(a) whether after disinvestment/strategic scale of BALCO and Hindustan Zinc Ltd. (HZL), the strategic
partners to the Government have closed down its Functional Units and Establishment;
(b) if so, the details thereof;
(c) whether the Government have also accorded the final approval therefor;
(d) if so, the details thereof; and
(e) if not, the steps are being taken by the Government for their illegal closure?
MINISTER OF THE STATE IN THE MINISTRY OF MINES
(SHRI SIS RAM OLA)
(a) & (b): As informed by Hindustan Zinc Limited(HZL), Agnigundala mine in Bandalamottu, Guntur District,
Andhra Pradesh and establishment of Sargipalli mine, Sundergarh District Orissa were closed down after disinvestment.
As regards Bharat Aluminium Company Limited (BALCO), the Company has informed that after disinvestment, production
at Bidhan Bag Unit, West Bengal was stopped due to heavy loss on production of value added products, higher scrap
generation, poor quality, poor sales realization and customer rejection while operations at their non value adding
operations such as Profile Tube Shop (PTS) Unit in the factory at Korba were discontinued to save costs.
(c) & (d): The decision for closure of Agnigundala and Sargipalli mines of HZL was taken on 12th May, 2000 by
the Board of Directors of HZL, while it was a Public Sector Undertaking. As regards BALCO, the Company has informed
that for stopping of the production at Bidhan Bag Unit and discontinuation of operations of the PTS, no approvals
under law or under the shareholders agreement are required.
(e): Does not arise.