Mines Secretary VL Kantha Rao said on Friday that the government had rejected a proposal by Vedanta group firm Hindustan Zinc to split its businesses into different units as it was not convinced that such a move would benefit shareholders. 

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"We have not agreed to the proposal," said Rao.

The ministry rejected the HZL demerger proposal based on a report. "Whatever report we have in front of us we are not convinced as a shareholder," Rao said. 

With a stake of 29.54 per cent, the government is the largest minority shareholder in the mining company, Hindustan Zinc. 

Earlier in the day, HZL shares ended 0.7 per cent higher at Rs 296.1 apiece on BSE, after rising as much as 1.3 per cent to Rs 297.8 apiece during the session. 

In September last year, Hindustan Zinc announced plans to spin off its business into separate entities for its zinc, lead, silver, and recycling operations to unlock potential shareholder value.

Meanwhile, accounting major Deloitte unveiled a comprehensive roadmap for the country's mining sector advancement during ‘amrit kaal’ (golden era).   

Titled ‘Indian Mining Sector: The Amrit Kaal Journey’, the roadmap underscores the industry's pivotal role in the country's economic landscape, particularly in the ‘amrit kaal’ (golden era), marked by ambitious objectives for sustainable growth. 

Deloitte India Partner Rajib Maitra emphasised the critical need for embracing cutting-edge technologies and sustainable practices to ensure global competitiveness and environmental preservation.

Central to the report, which advocated for transparency in revenue-sharing models and suggested the implementation of an Exploration Incentive Scheme to attract investments into green field projects, was the call for collaboration between governments and the private sector to leverage mineral resources through innovative technologies.