The Hindu Business Line : `Hind Copper net to cross Rs 400 crore'

New Delhi, Feb. 23 Public sector Hindustan Copper Ltd is expected to post a net profit in excess of Rs 400 crore during the current fiscal and is planning to undertake major expansions soon. The company has found a big copper deposit area of 24 sq. km, out of which 3 sq. km are in Rajasthan and 21 sq. km in Haryana recently, the Minister of Mines, Mr Sis ram Ola told Business Line.

Based on the increased availability of raw materials the company would be deciding on the modalities of future expansions shortly.

"The Hindustan Copper board is also likely to take decisions on its future expansion plans soon. The expansions could be either brownfield expansion independently or may be through joint ventures also. The company board would be taking the final decision," Mr Ola said.

One of the requisite preconditions to decide on the location of expansion would be the availability of cheap power since this is one of the major considerations in terms of cost, the Minister said and added that the expansions would be within India only.

Mr Ola pointed out that after incurring losses for nine successive years, Hindustan Copper came back to profit after the present Government came to power.

"During 2004-05 the company posted a profit of Rs 52 crore which doubled in 2005-06 to Rs 102 crore." he said

Stating that "during 2006-07 we are trying to make a profit of more than Rs 400 crore which would be around 400 per cent increase," Mr Ola pointed out that there are no dearth of resources at present.

(Nalco)

Another company under the administrative control of the Ministry of Mines, Nalco, too had been performing very well. "From a net profit of around Rs 630 crore in 2004-05 to Rs 1,262 crore in 2005-06. In 2006-07 the net profit would exceed Rs 2,000 crore and the company's board would soon take up a proposal to pay an interim dividend of around Rs 200 crore to the Government," Mr Ola said.