Hindustan Zinc Ltd Discusses New Divestiture Plan with Government

Hindustan Zinc Ltd (HZL), part of the Vedanta group, is in talks with the government to revise its demerger strategy, moving from a three-entity split to two. The decision comes after initial resistance from the government, which holds a significant stake. HZL aims to separate its mining and smelting operations.

Vedanta group firm Hindustan Zinc Ltd (HZL) has resumed negotiations with the government regarding a revised plan to split the company into two verticals, instead of the initially proposed three, CEO Arun Misra announced on Wednesday.

The restructuring initiative to create distinct entities had been paused due to opposition from the government, which holds a 29.54 per cent stake in HZL.

In a recent interview with PTI, Misra indicated that the discussions with the government regarding this strategic demerger were productive. 'So now they (the government) will come back (on this). Yeah, we have discussed again...So three become two,' the CEO elaborated.

(With inputs from agencies.)