Nalco Draws Up Rs 3,708 Crore Investment Plan

The National Aluminium Company Ltd (Nalco), a public sector undertaking under the ministry of mines, plans to invest Rs 3,707.92 crore for expansion of its mines, refinery, smelter and captive power plant during the ninth plan.

A total outlay of Rs 4,448.82 crore has been proposed for Nalco during the ninth plan. The company plans to raise Rs 2,954.04 crore from its internal resources and the balance Rs 1,494.78 crore through market borrowings.

The government has approved the proposal for expansion of its bauxite mine, located in Koraput district of Orissa, from 24 lakh tonnes per annum to 48 lakh tonnes per annum.

The company has also been given a go ahead to increase the capacity of its alumina refinery from eight lakh tonnes per annum to 15.75 lakh tonnes per annum.

Nalco has appointed Engineers India Ltd (EIL) for project management, tendering and procuring services, commissioning and supervision, construction management and cost and time monitoring of the project.

Engineers India Ltd has already commenced work and the project is expected to be completed by March 2001.

The company has extended its collaboration agreement with Aluminium Pechiney of France for a period of four years to improve its alumina process.

The revised outlay for the PSU in 1996-97 was Rs 203.72 crore, substantially lower than the budget estimate of Rs 400 crore due to delay in approval of the expansion proposal.

In the 1997-98 budget, an outlay of Rs 461.96 crore has been proposed for the company.

Production of bauxite and alumina by Nalco in 1997-98 is expected to be 24 lakh tonnes and eight lakh tonnes respectively, same level as in 1996-97, according to the ministry of mines.

The company is expected to produce 2.18 lakh tonnes of aluminium and 4,100 million kwh of power during the year.

Nalcos gross turnover during the current is expected to go up to Rs 1,729.24 crore as against Rs 1,662.49 crore in 1996-97.

The company is expected to sell 1.58 lakh tonnes of aluminium in the domestic market in 1997-98 compared to 1.40 lakh tonnes in the last financial year.

Export of aluminium by Nalco this year would be around 60,000 tonnes, same level as in 1996-97.