Hindustan Construction Company Limited (HCC) has entered into a strategic partnership with Konkan Railway Corporation Limited (KRCL), signing a Memorandum of Understanding (MoU) to jointly pursue and execute large-scale railway and multi-modal transport infrastructure projects. This collaboration aims to leverage the strengths of both organizations in India and international markets.

Key Highlights of the Partnership

• Complementary Expertise: The alliance combines HCC's proficiency in heavy civil construction and project execution with KRCL's capabilities in rail systems, operations, and project implementation.
• Focus Areas: The partnership will target complex assignments, including underground and elevated metro systems, NATM tunnelling, railway bridges, and large-scale EPC contracts.
• Diverse Project Structures: Both organizations will jointly identify and bid for opportunities under various contractual frameworks, including EPC, design-build, unit-rate contracts, and PPP arrangements.
• Flexible Collaboration: The MoU allows for the formation of joint ventures, consortia, or other collaborative structures tailored to specific project requirements.

Strategic Implications

Mr. Arjun Dhawan, Vice Chairman & Managing Director of HCC, emphasized the significance of this partnership, stating, "This MoU underscores HCC's commitment to creating synergies with public sector leaders like KRCL to meet the growing demand for technically advanced and high-value infrastructure. By combining capabilities, we aim to expand our presence in both domestic and international markets while delivering fully integrated transport solutions that span civil construction and rail systems."

Mr. Santosh Kumar Jha, Chairman & Managing Director of KRCL, expressed enthusiasm about the collaboration, saying, "Konkan Railway Corporation is pleased to join hands with HCC to jointly pursue infrastructure projects of national and international significance. With our combined expertise, we are well-positioned to execute complex projects, extend our operational footprint, and contribute meaningfully to the advancement of modern transport networks."

About the Companies

Hindustan Construction Company Limited (HCC)

• A business group with a nearly 100-year engineering heritage
• Has executed major infrastructure projects in India, including:
  • 26% of India's Hydro Power generation capacity
  • 60% of India's Nuclear Power generation capacity
  • Over 4,036 lane km of Expressways and Highways
  • More than 402 km of complex Tunnelling
  • 403 Bridges
• Currently serves the Transportation, Power, and Water infrastructure sectors

Konkan Railway Corporation Limited (KRCL)

• A wholly-owned subsidiary of the Ministry of Railways, Government of India
• Established in 1990 to construct and operate the Konkan Railway
• Headquartered in Navi Mumbai
• Expertise in engineering, tunnelling, track construction, electrification, signalling & telecommunication, and project management

This strategic alliance is expected to create new opportunities for both HCC and KRCL, enhancing their ability to deliver world-class transport infrastructure and contribute to the development of infrastructure ecosystems in India and abroad.

Hindustan Zinc , a leading integrated producer of zinc, lead, and silver, has announced a bold expansion strategy aimed at doubling its metal production capacity over the next three to five years. The company plans to invest between Rs 30,000 crore and Rs 35,000 crore to achieve this significant growth.

Expansion Details

CEO Arun Misra revealed that Hindustan Zinc aims to increase its annual metal production from the current 1 million tonnes to 2 million tonnes. This ambitious plan is supported by the company's substantial ore reserves, which stand at 450 million tonnes, equivalent to 30 million tonnes of metal. These reserves are sufficient to sustain the planned expansion.

Operational Efficiency and Mining Capacity

To facilitate this growth, Hindustan Zinc is collaborating with an Australian mining consultant to boost operational efficiency by 30%. The company intends to increase its annual mining capacity from 17 million tonnes to 21-22 million tonnes. This expansion will involve both horizontal and depth extensions of existing mines, with plans to construct over 100 kilometres of tunnels annually.

Financial Strategy

Hindustan Zinc's expansion will be entirely self-funded, leveraging the company's robust financial performance. With an estimated annual profit after tax of Rs 10,000.00 crore, the company will not need to resort to debt financing for this massive undertaking.

Timeline and Implementation

The company has set an ambitious timeline for its expansion plans:

• All orders for new smelters, concentrators, and mine expansion will be placed by November 2025.
• The expansion is expected to be completed within three to five years.

Cost Management and Market Position

To maintain its competitive edge in the global market, Hindustan Zinc aims to keep production costs below $1,000.00 per ton. This cost-effective approach will be crucial as the company significantly increases its production capacity.

Market Response

Investors have responded positively to the announcement, with Hindustan Zinc's shares trading 2.66% higher at Rs 464.95 on the day of the news release.

This expansive growth plan underscores Hindustan Zinc's commitment to strengthening its position in the global metal market and capitalizing on the increasing demand for zinc, lead, and silver.