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National Aluminium Company Ltd.

BSE: 532234 Sector: Metals & Mining
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OPEN 68.80
VOLUME 1018200
52-Week high 97.65
52-Week low 56.55
P/E 10.25
Mkt Cap.(Rs cr) 13,298
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 68.80
CLOSE 68.05
VOLUME 1018200
52-Week high 97.65
52-Week low 56.55
P/E 10.25
Mkt Cap.(Rs cr) 13,298
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

National Aluminium Company Ltd. (NATIONALUM) - Director Report

Company director report

Dear Members Members

Your Directors have great pleasure in presenting before you the 36th Annual Report ofyour Company together with the audited financial statements and Auditors' Report for thefinancial year ended 31st March 2017.

You will be happy to know that despite sluggish market conditions your Company hasachieved several milestones during the year under report as detailed below:


Physical Performance

Production Unit 2016-17 2015-16
Bauxite MT 6825000 6340142
Alumina Hydrate MT 2100100 1953000
Aluminium MT 387422 372183
Electricity (Net)-CPP MU 6066 5841
Wind Energy MU 206 156

• Bauxite Mines has achieved highest ever production with Bauxite transportationof 68.25 lakh MT (achieving 100% capacity utilisation) and has surpassed previous best of63.40 lakh MT achieved in last financial year registering a growth of 7.65%. Bauxiteexcavation of 68.25 lakh MT during the year is also highest ever since inceptionsurpassing the previous best of 62.89 lakh MT achieved in 2015-16.

• Alumina Refinery has achieved highest ever production with alumina hydrateproduction of 21.00 lakh MT (100% of normative capacity) and has surpassed previous bestof 19.53 lakh MT achieved in last financial year registering a growth of 7.53%. SteamGeneration Plant (SGP) achieved highest ever net power generation of 453 MU surpassingprevious best of 438 MU achieved last year.

• Aluminium Smelter achieved cast metal production of 3.87 lakh MT registering agrowth of 4.03 % over previous year.

• CPP achieved ‘Net Power Generation' of 6066 MU registering a growth of3.85% over previous year.

• Wind Power: 3 wind power units at Gandikota Andhra Pradesh Devikot Rajasthan& Jaisalmer Rajasthan have generated 206 MU against 156 MU achieved last yearregistering a growth of 32.05%.

Sales Performance


The Company achieved total chemical sale of 1294900 MT in 2016-17 compared to1219926 MT achieved during 2015-16. This includes Calcined Alumina Export of 1243103MT made during 2016-17 as compared to 1174224 MT export made during 2015-16.


The total metal sales during 2016-17 was 385518 MT as compared to 372424 MT during2015-16. Total metal sale consists of domestic sale of 284926 MT and metal export ofabout 100591 MT. The total metal inventory at the end of financial year 2016-17 wasabout 3092 MT.

Particulars Unit Year Ending 31.03.2017 Year Ending 31.03.2016
Alumina MT 1243103 1174224
Aluminium MT 100591 94671
Alumina & Hydrate MT 51797 45702
Aluminium MT 284926 277753
Total Metal Sale MT 385518 372424
Total Chemical Sale MT 1294900 1219926

Out of total domestic metal sales of 284926 MT sale of 189416 MT was effected fromSmelter plant at Angul and sale of 95510 MT was effected from eleven stockyards locatedat Kolkata Baddi Jaipur Faridabad Bhiwandi Silvassa Bangalore Chennai VizagVadodara and Delhi.

Financial Performance

The details of financial performance are given below:

Particulars 2016-17 2015-16
Revenue from Operations(Gross) 8050 7269
Other Income 408 605
Total Income 8458 7874
Cost of materials consumed 1182 1104
Power & Fuel 2213 1865
Employee benefits expenses 1537 1398
Other Expenses 2041 1946
Depreciation & amortization expenses 480 426
Total Expenses 7453 6739
Profit Before Exceptional items 1005 1135
Add/(Less):Exceptional items (40) 54
Profit before Tax 965 1189
Tax Expenses 296 402
Profit After Tax 669 787

Note: Previous year's figures has been re-casted in compliance with Ind AS.


Metal and mining industry has borne the brunt of China slow down (2013 to 2016).Capacity overhang globally as a result of China slow down has pushed production slow downand low price regime. In case of Aluminium factors such as continuous supply overhangincreasing export barriers on Chinese Aluminium and increasing pollution controlrestrictions in China could result in capacity shut down in China some of which hasalready taken place. This could result in demand supply deficit in global markets.

However India is likely to benefit from emerging global mega trends as technologyadoption climate and regulatory changes infrastructure built up shift in economicpower demographic shifts and urbanization will create domestic demand. Increased use ofmetal in automobiles building and construction sector railways white goods and solarpower etc. would spur the demand in domestic market. It is expected that both Aluminiumand Alumina price to remain range bound over next five to seven years as few producersespecially in USA and EU may resume production.

Dividend and Appropriations

A Dividend Distribution Policy has been formulated and approved by the Board ofDirectors and the same is available in the Company's website

Dividend Pay-out

Your Company has paid dividend of Rs2.80 per share for the financial year 2016-17. Thetotal dividend payout for the financial year 2016-17 works out to Rs541.22 crores asagainst Rs467.13 crores (Rs2.00 per share) for the previous year. Dividend includingdividend distribution tax works out to a payout of 97.44% of PAT.

It is proposed not to transfer any amount to the General Reserve for the financial year2016-17.

The dividend for the year 2016-17 was declared in line with the DIPAM guidelines.

MoU Performance

Based on financial performance and achievement of other parameters laid down yourCompany is likely to be rated "Excellent" as per the Memorandum of Understanding(MoU) signed with the Government of India for the financial year 2016-17.

Signing of MoU with Ministry for 2017-18

Raw Material Securitisation

• Utkal D and E Coal blocks have been allotted to NALCO in May 2016 by Ministryof Coal.

• Terms of Reference for grant of Mining Lease of Pottangi bauxite mine wasreceived from Government of Odisha in July 2016. NALCO has submitted the acceptance ofconditions in August 2016.

• Bridge Linkage of Coal was sanctioned upto 8.9 lakh MTPA valid from 2016-17till 2018-19.

• G-8 grade coal linkage (2 lakh MTA) was booked from M/s. NCL for Refinery for aperiod of 5 years equivalent to 2.73 Lakh MTA G-12 & G-13 grade coal through linkageauction.

• Mining lease of Panchpatmali Bauxite Mines (Central & North Block) has beenextended upto 16.11.2032 from existing 31.03.2020 by Government of Odisha.

• All regulatory clearances for opening of South Block Panchpatmali bauxite mineshave been obtained.


5th Stream of Alumina Refinery

Your Company is in the process of setting up 5th Stream in its existing AluminaRefinery which shall add 1.0 MTPY to its existing capacity of 2.275 MTPY at a Capitalexpenditure of Rs 5540 crores based on improved Medium Pressure Digestion technology ofM/s. RTAIL (Rio Tinto Alcan International Limited). Your Company has obtained majorstatutory clearances like Environmental Clearance by MoEF & CC and Consent toEstablish (CTE) from Odisha State Pollution Control Board. Thyssenkrupp IndustrialSolutions (India) Private Ltd. has been appointed as EPCM consultant for the project.

Pottangi Bauxite Mines

Pottangi Bauxite mines (75 Million Tons) has been reserved by Government of India infavour of Your Company. Government of Odisha issued the terms and conditions for issuanceof mining lease in favour of NALCO in July 2016 and Your Company conveyed its acceptanceto Government of Odisha in August 2016. Activities are undertaken for complying withvarious conditions to obtain the mining lease.

Utkal D & E Coal Blocks

Utkal D & E Coal blocks (200 Million Tons) have been allotted by Government ofIndia in favour of Your Company in May 2016. Your Company is in process of transfer ofland & other statutory clearances for Utkal D from prior allottee in its favour. Termsof Reference (TOR) has been issued by MoEF & CC against Environmental Clearanceapplication for Utkal D & E Coal blocks. Mining Plan for Utkal-D & E submitted toMoC for approval.

100 MW Wind Power projects

Your Company has commissioned its Wind Power Plant of capacity 50 MW & 50.4 MW inthe state of Rajasthan & Maharastra respectively at a Capital Expenditure of Rs 669crores.

Retrofit Conversion of Flat Bottom Tank to HRD-DCW in Streams # 1 2 & 3 at AluminaRefinery

Your Company is going for retrofit Conversion of Flat Bottom Tank to HRD-DCW in Streams# 1 2 & 3 of its existing Alumina Refinery to improve operational efficiency at anestimated cost of Rs 355 crores. Order has been placed on M/s. RTAIL as a TechnologyLicenser. M/s. EIL has been appointed as PMC (Project Management Consultant) for theproject.

Roof Top Solar Power project

Your Company commissioned 50 KWp Rooftop Solar Power plant at NRTC (NALCO Research andTechnology Centre) Bhubaneswar in November 2016 with a total project cost of Rs 37.30Lakhs.

BPTG #5 Project

To reduce dependency on power supply from the grid BPTG-5 project was envisaged. Theproject has achieved mechanical completion during the year and expected to be commissionedshortly.


• Your Company has formed a JV Company named ‘Angul Aluminium Park Pvt. Ltd.(AAPPL)' in association with Odisha Industrial Infrastructure Development Corporation(IDCO) in 2010 to promote downstream and ancillary industries in Odisha. The project hasbeen approved by Dept. of Industrial Policy & Promotion (DIPP) Ministry of CommerceGovernment of India under Modified Industrial Infrastructure Upgradation Scheme (MIIUS).NALCO and IDCO hold 49% and 51% equity in the JV Company. Your Company's equitycontribution to AAPPL till March 2017 is Rs 14.70 crores.

• Caustic Soda Project in JV with Gujarat Alkalies and Chemicals Ltd. (GACL): YourCompany has formed a JV Company "GNAL" with GACL in Dec 2015 to set up 2.7 lakhTPA caustic soda plant along with 130 MW captive power plant at Dahej in Gujarat.Pre-project activities like land acquisition bidding for Boiler Turbine Generator (BTG)package & Balance of Plant (BOP) package and Technology selection for the caustic sodaplant is underway.

• Your Company plans to setup a 20 MW Solar Power Plant in Madhya Pradesh. Theproject is registered with MPNRED (Madhya Pradesh New & Renewable Energy Dept.) and55.62 Ha land has been transferred to MPNRED in November 2016. Application for gridconnectivity permission was submitted to MPPKVVCL (Madhya Pradesh Paschim Kshetra VidyutVitaran Company Ltd.) in November 2016.

• Company plans to set up another Wind Power Plant of 50 MW capacity at anysuitable location in India. Techno-commercial bids for selection of wind power developerwere opened in December 2016 and price bid is in the process of being opened.

• Company has issued NIT for selection of developer for EPC for 50 MW Solar PowerProject at any suitable location in India.

• Establishment of Gajamara Power Project: Company has signed an MoU with NTPC toform a JV Company for establishment of 3X800 MW coal based Power Plant at GajamaraDhenkanal Odisha for supplying power to Smelter expansion projects.

• Establishment of Coal Tar distillation plant: Your Company has signed an MoUwith Neelachal Ispat Nigam Ltd. (NINL) for setting up a Coal Tar distillation plant in JVmode for production of Coal Tar pitch.

• Establishment of Aluminium Alloy manufacturing plant: Your Company has signed anMoU with Mishra Dhatu Nigam Ltd. (MIDHANI) for establishment of Aluminium Alloymanufacturing plant for meeting the requirement of defence aerospace automotive andtransport sector under the "Make in India" initiative of Government of India.


During the year the capital expenditure of the Company was Rs 876.09 crores whichincludes Rs38.47 crores towards equity contribution to Joint Venture Companies.


A Risk Management Policy has been formulated and approved by the Board of Directors andthe same is available in the Company's website


Presidential Directives on SC/ST reservation

Your Company fully complies with all applicable Presidential Directives and otherguidelines in matters of reservation for SC/ST/OBC and other categories like the PWD Exservicemen etc. Out of total manpower strength of 6938 as on 31.03.2017 there were 1129SCs (16.27%)

1278 STs (18.42%) 803 OBCs (11.57%) 86 PWDs (1.24%) and 18 ESMs (0.26%) on roll.There were a total of 354 lady employees in the Company as on 31.03.2017.

Industrial Relations

The positive Industrial Relations climate of the Company throughout the year helped inachieving excellent all-round performance during 2016-17. The Workers'Participation in Management continued to remain a fulcrum of the Industrial Relationspractice of the Company. Creation of a culture conducive to sustainable development on allfronts including a focus on improving happiness index through various employee friendlyactions remained the highlight of the year. Long pending issues like Special FinancialPackage for non-executive employees of Mines medical related issues and the issue ofrationalisation of NPS contribution of executives were settled amicably.

Social Accountability 8000

For creating and maintaining a decent work place your Company continues to implementSA 8000 Standard successfully.

All the units including Corporate Office have been certified to SA 8000-2008 Standard.Your Company is in the process of transition to SA 8000:2014 (revised) Standard from SA8000-2008 Standard.


Corporate Social Responsibility has been core to the philosophy of the Company.Accordingly the Company has been taking up different Peripheral Developmental activitiesCSR Projects and Programmes since its inception. The CSR Projects/Programmes areidentified based on the internal assessment in periphery area directly by your Company andthe recommendation of Rehabilitation and Peripheral Development Advisory Committee (RPDAC)and through its CSR arm Nalco Foundation as well as feedbacks received from differentstakeholders.

Free Health Camp

For achieving the Corporate Social Responsibility (CSR) objectives through theimplementation of meaningful and sustainable CSR Programmes your Company has spent Rs3000.80 Lakh in FY 2016-17 towards CSR activities against the mandated spending of Rs2756.55 Lakh as per the CSR policy and Section 135 of the Companies Act 2013.

The CSR policy is developed in line with the Companies Act 2013 which aims tosupport the disadvantaged/marginalized cross section of the society by providingopportunities to improve the quality of life demonstrating care for the community throughits focus on education Health care and

Sanitation measures for environmental sustainability providing safe drinking waterprotection of National heritage art and culture skill development of local youth toenhance their employment capability etc.

Some of the unique CSR initiatives taken during the year besides the ruralinfrastructure development;

• Under protection of environment your Company has ventured for massive avenueplantation and joined green energy revolution by installing 50 Kw Roof top Solar Systeminstalled at Nalco Research and Training Center (NRTC) Bhubaneswar and installed solarstreet light in eight remote periphery villages of M&R complex Damanjodi.

• Under the Government of India call for Swachh Iconic Shrine development yourCompany joined hands as a multi stake partner for Development of Iconic Shrine Puri andtransform it to a Swachh Pilgrimage Place.

• Under efforts to promote education your Company continued to sponsor 755students from tribal dominated area of Koraput for their education at three (03)residential Schools extended financial support to 181 poor and meritorious girl studentsfrom periphery villages of Angul & Damanjodi to continue their study under the Schemeof "Nalcora Aliali Jhia" (Nalco Ki Ladli) in line with Government of India"Beti Bachao & Beti Padhao". Your Company also provided education to 4129periphery students at Company aided School "Saraswati Vidya Mandir" both atAngul and Damanjodi.

• Your Company continued to provide better health-care services to inhabitants of163 periphery villages at Mines & Refinery Complex Damanjodi who are mostly tribalpeople by operating 4 Mobile Health Units (MHUs). Similarly 3 Mobile Health Units (MHUs)and one Specialist OPD is operating since November 2017 in Smelter & Power ComplexAngul covering 39 periphery villages. In the year 2016-17 around 112809 patients haveavailed free health-care services at their door-steps in the periphery villages of boththe production units.

• Action has been initiated to make eleven (11) villages Open Defecation Free(ODF). Construction of Indian House Hold Toilets (IHHT) have been started in two minesperiphery Villages of M&R Complex Damanjodi.

A detailed report on CSR activities prepared in line with various applicable provisionsof the Companies Act 2013 is attached at Annexure-I.


The following Parliamentary Committees visited the Company during the year 2016-17 asunder:

• Visit of the Department related Parliamentary Standing Committee on Industriesbetween 25.06.2016 to 27.06.2016.

• Study visit of the Committee on Subordinate Legislation Rajya Sabha between16.07.2016 to 17.07.2016.

SCOPE Excellence Award in Institutional Category from Hon'ble President of India


Management Discussion & Analysis report in line with Regulation 34(3) read withSchedule-V of the SEBI (LODR) Regulations 2015 is placed at Annexure-II to thisreport.

The report also contains:

(a) various initiatives undertaken to further business development.

(b) the details of risk management initiatives the details in respect of adequacy ofinternal financial controls with reference to the financial statements.

(c) various initiatives taken up in the field of Environment Management at differentunits of your Company.


Your Company continued its efforts in taking advantage of latest developments in theInformation Technology by suitably using them in the day-to-day functioning of theCompany. In that direction the Company has taken various steps as detailed below: SAP ERPhas been implemented for Procurement Inventory Management Finance & ControllingSales & Distribution Production and Human Resource Management. Your Company hascentralized Payroll Attendance Perquisites and Leave System on legacy platform. Acentralised Hospital Management System is being implemented for the Company hospitals atAngul and Damanjodi.

For close monitoring of various initiatives an online Capital Expenditure MonitoringSystem Departmental Action Plan & Dashboard Monitoring System Fund MonitoringSystem Audit ATR Monitoring System have been implemented. Implementation of RevenueExpenditure Monitoring System is in progress.

To enable transparent and efficient procurement practice eProcurement of goods is donethrough SAP SRM7 and services are sourced through Central Public Procurement portal.Further a Bill Tracking System is being developed to enable vendors to track invoices andknow the payment details. To facilitate monitoring of all contracts across the company anonline Contract Labour Management System is being implemented. Further plans have beeninitiated to implement analytics as decision support tools.

Digitization of documents and records has been taken up at various Offices and Units.It is planned to introduce the e-Office Document Management System. Knowledge Managementwill also be a key area of activity.

The network which is the backbone of IT has been revamped with 10 Gbps backbone and 1Gbps access technology and advanced routing sequestering and queuing technologiesresulting in efficient and fast throughput across the network. The Wide Area Networkconnecting plants and offices has been completely migrated to MPLS technology. Criticallocations have been provided with dual circuits for fault tolerance.

For computing infrastructure that is nearing completion of life cycle action isunderway for replacing with current and scalable technology also building a central cloudinfrastructure that caters to the server requirements organization wide. Focus is towardsuse of virtualization in servers to leverage the flexibility of virtualized serverprovisioning. Disaster recovery coverage is now being extended to all the legacyapplications and services. Your Company has taken steps to reinforce and secure its ITinfrastructure and ecosystem by formulating an IT Security Policy and framework toimplement an effective Information Security Management System leading to ISO 27001certification. This will be an assurance to all stake holders regarding theConfidentiality Integrity and availability of our IT infrastructure including partieswho are transacting digitally with the Company. In security implementation sensitizationhas been carried out against threat of Ransomware and preventive and corrective actionrequired thereof. Current roadmap of activities includes digital office for documentstorage and retrieval as well as work flow automation social platforms for in-house aswell as for public. The e-governance processes cover in-house services to employees andservices like online application systems for recruitments to the general public.Implementation of employee self service modules such as centralized Loans andReimbursement is in the pipeline. This provides an online platform for employeeparticipation quicker service and uniformity in business logics followed across theenterprise.

IT Audit by C&AG

Comptroller & Auditor General of India (C&AG) has selected your Company toundertake IT audit of ERP system (SAP) during 2016-17. The audit coverage includesexamination of the system development process and the procedures followed at variousstages involved therein review of the security of the IT systems data integrity alongwith evaluation of general and application controls of the IT systems to gain assuranceabout their adequacy and effectiveness evaluation of the main process involved indifferent modules of the system and evaluation of performance of the system. Theobservations by C&AG on access controls master data maintenance has already beenaddressed by the management through appropriate control mechanism and guidelines onmaintenance of master data.


Your Company has taken following major initiatives during the year under report:

Business Excellence

Business excellence is a concept that believes in "outstanding practices inmanaging the organization and achieving results" through a systematic and structuredactions those lead to increased performance. With active involvement of top Managementyour Company implemented the BE programs at Smelter & Alumina Refinery units.

Smelter Plant: Business Excellence initiative was launched at Smelterduring the year. The BE Star Recognition on Operation Excellence Model was taken up forimplementation. A 3-day training and assessment session was conducted on the OperationalExcellence Framework during 3rd to 5th January 2017 with faculty support from CIIInstitute of Quality Benguluru.

Alumina Refinery: Business Excellence (BE) initiative that launchedearlier at Alumina Refinery was further enhanced with introduction of the comprehensiveCII-Exim Bank Business Excellence Model. This model is based on the latest EFQM (EuropeanFoundation of Quality Management) Excellence Framework i.e. EFQM 2013. This comprehensivemodel was launched at Alumina Refinery during August 2016. Subsequently top levelCouncils were formed and training of core team members was taken up. Drafting of positionreport for CII Exim-Bank Business Excellence assessment is in progress.

Integrated Management System

Recertification Audits and Surveillance Audits were conducted at all the unitswithin scheduled time and the units i.e. Alumina Refinery Mines Smelter CPP Vizag PortFacilities are operating with valid ISO 9001 : 2008 ISO 14001 : 2004 & OHSAS18001:2007 Certificates which are issued with international accreditation from RVANetherlands/ UKAS U.K.

Energy Management System

Recertification Audit of Alumina Refinery for ISO 50001 System was successfullycompleted and the unit is recertified to ISO 50001 with the certificate issued withinternational accreditation from RVA Netherland. The other two energy intensive unitsi.e. Smelter & CPP covered in PAT are also operating with similar valid certificates.

Perform Achieve & Target (PAT) Scheme

Mines & Refinery Complex and Smelter & Power Complex were notified asDesignated Consumers by M/s. Bureau of Energy Efficiency (BEE) Ministry of PowerGovernment of India in the PAT scheme. During the year a total of 36119 Energy SavingsCertificates (EScerts) were issued by M/s. BEE to the organisation in recognition ofperforming better than the assigned targets during the completed PAT Cycle-1. Thecertificates were issued based on independent audit report submitted by accredited EnergyAuditors of M/s. BEE and subsequent verification by the administrative body.

Quality Circles and Kaizens

• 53 Quality Circles across the organisation have completed 51 projects during theyear. 557 Kaizens were also completed during the year.

• 14 Quality Circles from different units of the Company participated in theNational Quality Circle Convention organised by QCFIat Raipur. Out of these eight QCsachieved recognition as "Par-Excellence" performers the top-category award inthe national level competition.

• The 21st All Odisha Quality Circle Convention was organised by the Company on20th & 21st April 2016. This premier State level convention had participation of 25units i.e. industries mines operating in Odisha.

• The Inter-Unit Quality Circle Competition was held on 10th November 2016 atM&R Complex where ten Quality Circles from different units participated. The winnersof Essay Slogan & Poster competition and the Inter-Unit QC competition werefelicitated in the function.

5S implementation

5S system was introduced at Alumina Refinery Mines Smelter & CPP in total sevenidentified areas. Subsequently the implementation was also assessed by the externalassessors from QCFI Hyderabad. Based on their assessment six of these areas were ratedas "Excellent Implementation". Alumina Refinery has further rolled out thisinitiative in additional areas in the unit.


As per the Official Language Act 1963 and Official Language Rule 1976 implementationof Hindi has been done in your Company.

• To promote use of Hindi in official work Hindi Fortnight was observed from01-09-2016 to 14-09-2016 at Corporate Office and at S & P Complex Angul. SeveralHindi Competitions were organised separately for Hindi speaking and Non-Hindi speakingemployees and students. Likewise Hindi Week was observed at M & R Complex Damanjodiwhere various competitions were held among employees and students.

• Hindi Teaching Program was implemented at Corporate Office S&P Complex andM&R Complex and the employees who do not have working knowledge of Hindi werenominated for Praveen & Pragya courses under Hindi Teaching Scheme of Government ofIndia and after passing the examinations incentives and cash awards were given as perrules.

• Two Meetings of Town Official Language Implementation Committee(Undertaking)BhubaneswarandTownOfficialLanguageImplementation Committee Angul each washeld during the chairmanship of NALCO. Joint Hindi Workshops organised for employees ofall the member offices.

• One Special Hindi Workshop was organised with the faculty assistance ofDr.(Smt.) Vinay Sarangi Rajaram Member of Hindi Advisory Committee of Ministry of MinesGovernment of India and reputed Hindi scholar.

• Website of Company is made Bilingual and beingregularly updated both in Hindi and English.

• During the year your Company has provided Faculty Assistance on the subject"Unicode and Technical Facilities in Computer and Mobile phones in Hindi &Regional Languages" in the workshops organised by different CPSUs and at RajbhashaSammelans.

• Bilingualisation of online applications like Payroll Leave applicationEmployees rolls in SAP are being implemented under Digital India Movement.


Your Company continues to promote sports and sports person in the country. As the partof promotion of sports your Company sponsored Hockey India League (HIL). Your Companyalso sponsored NALCO Cup State Hockey Championship NALCO Cup State Open Tennis Tournamentand NALCO Cup Basket Ball Championship.

As matter of policy to encourage young sports person your Company felicitates sportsperson of the State participating and excelling in the field of sports.

Mr. Sukhram Majhi and Md. Jafar Iqbal team member of Indian Blind Cricket Team whowon the World Cup – 2016 were felicitated on 1st April 2017 in the occasion ofUtkal Divas.

Your Company also offered job to four women Hockey players from the State whoparticipated in the Rio Olympics as a policy to encourage young sports person.


Broad details of the Vigil Mechanism established in your Company are given below:-

• Your Company has a well established vigilance organization in the Company headedby a Chief Vigilance Officer (CVO) who is appointed on deputation from Government ofIndia. Other vigilance officers who assist the CVO are selected on deputation basis inconsultation with and concurrence of CVO. NALCO has its vigilance set up at threelocations i.e. Corporate Office Bhubaneswar S&P Complex Angul and M&R ComplexDamanjodi.

• The vigilance functions are generally in the nature of preventive punitivesurveillance and detection.

The Vigilance Department functions in brief are;

• Investigating complaints.

• Surprise Checks in sensitive areas.

• Study of contract/purchase/sales files and Internal Audit Reports which are goodsource of information for vigilance cases.

• Suggesting system improvements.

• Circulation of CVC Circulars/ guidelines.

• Giving vigilance clearances to various employees for various purposesviz.NOCforissueofPassportPromotionResignation/Superannuation/ Voluntary RetirementConferment of Award Foreign Assignment Deputation and appointment of officers to Boardlevel etc.

• Scrutiny of Property Returns.

• Advising on rotation of officials in sensitive posts.

• Advising CMD on vigilance matters and matters relating to disciplinaryprocedures.

• Liasoning with CBI etc.

• Implementation of Integrity Pact.

• Conducting training programmes for awareness among employees and general publicas a part of preventive vigilance mechanism.

Functions of CVO

The functions of CVO are as follows:

• Maintaining a good link with CVC and CBI besides organizing structured reviewmeeting with CBI.

• Furnishing of various return/ report to ministry/CVC/CBI.

• Assisting CVC in selection of Independent External Monitors (IEMs) for I.P(Integrity Pact).

• Assisting management in formulation/updation of anti-corruption policies/measure.

Whistle Blower Policy

Your Company believes in the conduct of the affairs of its constituents in a fair andtransparent manner by adopting highest standards of professionalism honesty integrityand ethical behavior.

The purpose of this policy is to provide a framework to promote responsible and securewhistle blowing to prohibit managerial personnel action. It protects employees wishing toraise a concern about serious irregularities within the Company.

Details of the policy are available in the website of your Company.

Fraud Reporting

No fraud has been reported by the Auditors under Section 143(12) of the Companies Act2013 during the year under report. The company has a Board approved Fraud preventionPolicy and the same is placed in the Company's website


In order to address the provisions of Right to Information Act (RTI) one PublicInformation Officer and nine Assistant Public Information Officers responsible forproviding information sought by stakeholders has been appointed. The following are thedetails of the RTI applications and appeals during 2016-17.

Under Process as 01.04.2016 Received during the year (including cases transferred from other Public Authority) No. of cases transferred to other Public Authorities Decisions where requests/ appeals rejected Decisions where requests/ appeals accepted and settled Under Process as on 31.03.2017
Requests 17 197 01 12 176* 26
First Appeals Nil 48 Nil 01 44 03

*Including one case transferred to other Public Authorities.

NALCO has been aligned with the Online RTI portal of Department of Personnel andTraining ( with effect from 18.01.2017. The RTI requests are receivedand replied through this online portal also.


The equity shares of your Company continued to be listed on BSE Limited and NationalStock Exchange of India Ltd the premier stock exchanges of the country having nationwidetrading terminals. The listing fees for the year 2016-17 were paid to these stockexchanges on time.


Buy-back of Shares

Based on the decision of the Board of Directors and approval of the shareholders by aspecial resolution through postal ballot on 14.07.2016 your Company had bought back644309628 number of equity shares of Rs5/- each on 21.09.2016 representing 25% of thetotal number of equity shares in the paid-up equity share capital of the Company. Theseshares were extinguished on 26.09.2016.The buy-back offer was at a price of Rs 44/- pershare for an aggregate consideration of Rs 2834.96 crores. The paid-up capital of theCompany has come down from Rs 1288.62 crores to Rs 966.46 crores. After the buy-back theshares held by the President of India has come down to 74.58% from 80.93% of the totalpaid-up capital of the Company.

Subsequent to the buy-back of shares public shareholding in the Company has gone up to25.42% thereby complying with the requirement of minimum public shareholding as mandatedby Ministry of Finance for all listed CPSEs.

Offer for Sale (OFS)

The Government of India sold 142455941 shares to non-retail investors and35613986 shares to retail investors on 19th April 2017 and 20th April 2017respectively through stock exchange mechanism comprising in total 9.2125% of the paid-upcapital of the Company. The Government of India received a consideration of Rs 1193.09crores through this Offer for Sale (OFS). Post OFS the total shares held by the Presidentof India have come down from 74.58% to 65.36% of the total paid-up capital of Rs 966.46crores.


All matters relating to transfer/transmission of shares issue of duplicate sharecertificates payment of dividend de-materialization and re-materialization of shares andredressal of investors grievances are carried out by the Company's RTA i.e. M/s. KarvyComputershare Pvt. Ltd. Hyderabad.


Annual connectivity fees and custody fees/issuer fees for the year 2016-17 were paid toboth M/s. National Securities Depository Ltd. and M/s. Central Depository Services (India)Ltd. on time.


In line with Regulation 34(2)(f) of SEBI (LODR) Regulations 2015 a BusinessResponsibility Report for 2016-17 describing various initiatives taken by the Company onsocial environmental and governance perspective is attached at Annexure-III whichforms part of this Annual Report.

Reports on Sustainable Development

• Business Responsibility Report addressing the requirements of economicenvironmental social & governance aspects based on the National voluntary guidelinesa mandatory requirement of SEBI is prepared and published in the Annual Report.

• The stand alone Sustainable Development Report based on international guidelines(GRI G4) was also prepared as a voluntary annual disclosure and the same was approved byManagement for review at the headquarters of the international body i.e. GRI at Amsterdam.The submitted report with minor modifications were also finally accepted by GRI.



Research & Development

• 150m3 per batch Effluent Water Treatment Plant with Emrion Nano Technology ofEesavyasa Technology Pvt Ltd first of its kind in the world was commissioned at SmelterPlant and is in operation. After completion of the Defluoridation Plant based on the nanotechnology trial was completed on 30.11.2016 successfully.

• After development of the process High Speed Extrusion Alloy (HSA) billet avalue added product the New Product Grade CH-90 added to NALCO's standard product list.Commercialisation of High Speed Extrusion Alloy (HSA) billet was done 25.01.2017 withdispatch of the 1st consignment.

• Under the MOU agreement with CHALIECO/ Guiyang Aluminium Magnesium Design &Research Institute Co. Ltd. (GAMI) China lab scale study for extraction of ironconcentrate from red mud a waste of Alumina Refinery Plant has been completed.Conventional High Gradient Pulse Magnetic Separation and a new technology-DisperseMagnetic Calcinations & Magnetic Separation was attempted for extraction of ironconcentrate from Red mud.

• A study was undertaken to establish suitability for iron recovery and 100%utilisation of Red Mud (Plant waste) with M/s. Shenwu Group China. Lab scale study hasbeen successfully completed and the test report has been received.

• MOU has been signed with Bhabha Atomic Research Centre (BARC) Mumbai on 10thMay 2016 for development of chemical method and technologies for value added processesand product in aluminium industry. Under the agreement two studies have been under takenby BARC i.e. (i) development of Gallium extraction technology from Bayer's Liquor ofAlumina Refinery process and (ii) Use of red mud in nuclear reactors.

• MOU agreement was signed with ‘The Energy and Resources Institute' (TERI)for (i) Generating new knowledge on mining rehabilitation methods and technologies (ii)Sustainable Rehabilitation of Red mud areas and (iii) Capacity building of relevantofficials.

• Four Patent applications were filed during the year.

The particulars relating to Conservation of Energy Technology Absorption ForeignExchange Earnings and Outgo as required to be disclosed under the Companies Act 2013 aregiven in the Annexure-IV to this report.


Your Directors' pursuant to the provisions of Section 134(3)(c) and 134(5) ofthe Companies Act 2013 hereby confirm that; • in the preparation of the annualaccounts the applicable accounting standards had been followed along with properexplanation relating to material departures; • the directors had selected suchaccounting policies and applied them consistently and made judgments and estimates thatare reasonable and prudent so as to give a true and fair view of the state of affairs ofthe company at the end of the financial year and of the profit and loss of the company forthat period; • the directors had taken proper and sufficient care for the maintenanceof adequate accounting records in accordance with the provisions of this Act forsafeguarding the assets of the company and for preventing and detecting fraud and otherirregularities; • the directors had prepared the annual accounts on a going concernbasis; • the directors in the case of a listed company had laid down internalfinancial controls to be followed by the company and that such internal financial controlsare adequate and were operating effectively; and • the directors had devised propersystems to ensure compliance with the provisions of all applicable laws and that suchsystems were adequate and operating effectively.


A report on Corporate Governance in line with Regulation 34 read with Schedule-V ofSEBI (LODR) Regulations 2015 and DPE guidelines is prepared and placed at Annexure-Vto this report. The Statutory Auditors of the Company have issued a certificate onCorporate Governance which is appended to the Corporate Governance Report.


The Policy on Related Party Transactions has been approved by the Board and placed inthe Company's website which can be accessed at

Your Directors draw the attention of the members to Note No. 43 of the financialstatements which sets out related party disclosures. No contract has been entered with anyrelated party during the year under report. However a report in Form AOC-2 is attached atAnnexure-VI to this report.


In accordance of the provisions of the Act the Board of Directors have appointed thefollowing as Key Managerial Personnel:

• Dr. T.K. Chand Chairman-cum-Managing Director

• Shri N.R. Mohanty Director (P&T) till 31.01.2017

• Shri K.C.Samal Director (Finance)

• Ms. Soma Mondal Director (Commercial) till 28.02.2017

• Shri V.Balasubramanyam Director (Production)

• Shri Basant Kumar Thakur Director (HR) (w.e.f. 04.07.2016)

• Shri S K Roy Director (P&T) (w.e.f. 03.02.2017)

• Shri K.N.Ravindra Executive Director – Company Secretary till 31.05.2017

• Shri N K Mohanty Company Secretary w.e.f. 01.06.2017

Declaration of Independence by Independent Directors

The Company has received declaration from the Independent Directors of the Companyconfirming that they meet the criteria of independence as prescribed both under theCompanies Act 2013 and SEBI (LODR) Regulations 2015.

Meetings of the Board

During the year eight Board meetings were held. Details of the meetings are availablein the report on Corporate Governance (Annexure–V) placed in this Annual Report.

Various Sub-committees of the Board

The details of various Sub-committees of the Board including Audit Committee theircomposition terms of reference details of meetings held are given in the CorporateGovernance Report attached to this report.


Extract of Annual Return of the Company in the prescribed Form MGT-9 is annexedherewith as Annexure-VII to this Report.


Your Directors state that no disclosure or reporting is required in respect of thefollowing items as there were no transactions on these items during the year under report:

• Details relating to deposits covered under Chapter V of the Act.

• Issue of equity shares with differential rights as to dividend voting orotherwise.

• Issue of shares sweat equity shares and ESOS to employees of the Company.

• Neither CMD nor the Whole-time Directors of the Company receive any commissionfrom the Company.

• No significant or material orders were passed by the Regulators or Courts orTribunals which impact the going concern status and Company's operations in future.

Your Directors also state that no disclosure or reporting is required in respect of thefollowing areas as they are exempted for Government Companies by Ministry of CorporateAffairs vide notification dated 5th June 2015 as amended and notification dated 5thJuly 2017.

• Company's policy on Director's appointment and remunerationincludingcriteriafordeterminingqualificationattributesindependence etc. as per Section134(3)(e) and Section 178(2)(3) & (4).

• Manner in which formal Annual Evaluation of performance of Board its Committeesand individual Directors has been carried out as per Section 134(p) read with Rule 8 (4)of Companies (Accounts) Rules.

• Ratio of remuneration of each Director to the median remuneration of theemployee and other prescribed details as per Section 197(12) read with Rule 5 of Companies(Appointment & Remuneration of Managerial Personnel) Rules.

Sexual Harassment of Women at Workplace (Prevention Prohibition and Redressal) Act2013

During the year one case was reported under the Sexual Harassment of Women atWorkplace (Prevention Prohibition and Redressal) Act 2013 which has been closed as ondate.

Particulars of loans guarantees and investments

Particulars of loans guarantees and investments form part of Notes for 10 and 12respectively to the financial statements provided in the Annual Report.

Subsidiaries Joint Venture Companies and Associated Companies

The Company does not have any subsidiary. Neither any company has become subsidiary JVor associate company nor has any company ceased to be subsidiary JV or associate companyduring the period under report. Particulars regarding joint venture companies andassociated companies form part of Note 47 of the Consolidated Financial Statementsprovided in the Annual Report.

Salient features of JV/Associate companies in Form AOC-1 (Note 48) forms integral partof the consolidated financial statement of the Company.

Awards & Recognitions

• The Panchpatmali Bauxite Mines of NALCO has been conferred with the 5-StarRating by the Ministry of Mines in February 2017 for its efforts and initiatives towardsSustainable Development Framework.

• Highest Export Award for its outstanding export performance in Minerals and Oressector for the year 2014-15 by Chemical & Allied Products Export Promotion Council(CAPEXIL) in February 2017.

• Performance Excellence Award from Indian Institution of Industrial Engineering(IIIE) in February 2017.

Hon'ble Ministers dedicating the wind power plants of NALCO to the nation

• SCOPE Meritorious Award for Corporate Social Responsibility & Responsivenessfor the year 2014-15 in FY 2016-17.

• SCOPE Excellence Award in Institutional Category-I for Navratna and MaharatnaCompanies for the year 2014-15 in FY 2016-17.

• 1st Prize for safety & welfare for contractor's workers and 1st Prize forwater management/monsoon preparation for Panchpatmali Bauxite mines awarded by DGMS inJuly 2016.

Other Notable Awards

• India Pride Award for the year 2015-16 for CSR Environment Protection &Conservation instituted by the Dainik Bhaskar Group in April 2016.

• ‘Outstanding CSR Practices in Community Development Award' during theOdisha CSR Summit 2016 jointly organized by KIIT School of Rural Management and OdishaLIVE at Bhubaneswar in April 2016.

• ‘CSR Excellence Award' in Gold category for the year 2015 by the Instituteof Quality and Environment Management Services (IQEMS) in association with Rotary Club -Heritage Bhubaneswar in May 2016.

• ‘Emerging Global Brand Award' by a leading web channel network Odisha Liveat Bhubaneswar in June 2016.

• The Times of India Group felicitated NALCO for its CSR initiatives in August2016.

• Best Exporter Awards consecutively for the years 2011-12 2012-13 and 2013-14under metallurgical products category in September 2016 at Bhubaneswar.

• Best Mother Plant award in the 30th Annual State Level Convention - 2016organised by Odisha Assembly of Small & Medium Enterprises (OASME)" on 12thAugust 2016.


Goods and Services Tax (GST) was implemented by Government of India effective from 1stJuly 2017. The Company was well prepared to migrate into GST regime on compliance ofstatutory provisions reconfiguration of ERP system and training of personnel to addressthe business requirement in compliance to GST Law. The Company has also conducted vendorawareness programmes in its plants and offices.

The Company has successfully migrated into GST w.e.f. 1st of July 2017 without anybusiness disruption and is well equipped to address all the future changes those will benotified by the Government from time to time.


You will be pleased to know that your Company has received ‘Nil' comments fromC&AG on the standalone financial statements of the Company. Further C&AG has alsogiven ‘Nil' comment on the supplementary audit conducted by them on the consolidatedfinancial statements of the Company. Their comments are placed elsewhere in this AnnualReport.


Statutory Auditors

M/s. ABP & Associates and M/s. Guha Nandi & Co. were appointed as jointStatutory Auditors of your Company by the Comptroller and Auditor General of India for thefinancial year 2016-17. The report of the Statutory Auditors is enclosed to this report.The observations made in the Auditors' Report are self-explanatory and therefore do notcall for any further comments.

Cost Auditors

As per Cost Audit Orders Cost Audit is applicable to the Company for the financialyear 2016-17. In terms of the provisions of section 148 and all other applicableprovisions of the Companies Act 2013 read with the Companies (Audit and Auditors) Rules2014 M/s. Tanmaya S Pradhan & Co have been appointed as Cost Auditors for the year2016 17.

Your Company will submit its Cost Audit Report to the Ministry of Corporate Affairswithin the stipulated time period.

Secretarial Auditors

In terms of Section 204 of the Act and Rules made there under M/s. Saroj Ray &Associates Practicing Company Secretaries have been appointed as Secretarial Auditors ofthe Company. The report of the Secretarial Auditors together with the explanations of themanagement on the qualifying remarks of Secretarial Auditors is enclosed asAnnexure-VIII to this report.

Internal Auditors

Your Company appointed the following CA firms for carrying out internal audit functionsof your Company for the financial year 2016-17:

• M/s. SRB & Associates for Corporate Office Bhubaneswar

• M/s. SCM & Associates for Smelter & Power Complex Angul

• M/s. Rao & Kumar for Mines & Refinery Complex Damanjodi & PortFacilities Visakhapatnam

• M/s. Bhatia & Bhatia for Northen Regional Office New Delhi

• M/s. Prabir Ranjan Datta & Co. for Eastern Regional Office Kolkata

• M/s. Raghavan & Muralidharan for Southern Regional Office Chennai

• M/s. MKPS & Associates for Western Regional Office Mumbai


The following changes took place in the Board of Directors of your Company since thelast report:


• Shri Subhash Chandra Joint Secretary Ministry of Mines was appointed asPart-time Official Director w.e.f. 20.10.2016.

• Shri S K Roy was appointed as Director (P&T) of the Company w.e.f.03.02.2017.

• Ms. Kiran Ghai Sinha was appointed as Part-time Non-official Director w.e.f.03.02.2017.

• Dr. Niranjan Kumar Singh Joint Secretary Ministry of Mines was appointed asPart-time Official Director w.e.f 15.03.2017.


• Shri N B Dhal Joint Secretary Ministry of Mines ceased to be Part-timeOfficial Director on the Board of your Company w.e.f 20.10.2016.

• Shri R Sridharan Special Secretary Ministry of Mines ceased to be Part-timeOfficial Director on the Board of your Company w.e.f 03.01.2017.

• Shri N R Mohanty Director (P&T) superannuated on 31.01.2017.

• Ms. Soma Mondal Director (Commercial) ceased to be associated with the Companyw.e.f 01.03.2017.

Your directors wish to place on record their appreciation for the valuable servicesrendered by Shri N B Dhal Shri R Sridharan Shri N R Mohanty and Ms. Soma Mondal duringtheir tenure on the Board of your Company.


Your Directors wholeheartedly place on record their appreciation for the continued andunstinted support of Government of India particularly from Ministry of Mines and otherMinistries/Departments of the Government of India Government of Odisha MahanadiCoalfields Ltd. Indian Railways Comptroller and Auditor General of India the PrincipalDirector of Commercial Audit & Ex-officio Member Audit Board Kolkata StatutoryAuditors Cost Auditors Secretarial Auditors Internal Auditors Bankers Solicitors andJV Partners Business Associates other Government agencies and CPSEs for the co-operationrendered by them during the year.

Your Directors also acknowledge the support extended by the valued and esteemeddomestic and international customers vendors solicitors and also look forward formaintaining such mutually supportive business relationship in the coming years too.

Last but not the least your Directors also place on record their appreciation for thededication commitment and sincere services rendered by the employees at various levelsand due to the active support and co-operation received from the Trade Unions &Officers' Associations for sustained improvements.

For and on behalf of Board of Directors
Place : Bhubaneswar Dr. Tapan Kumar Chand
Date : 19.08.2017 Chairman-cum-Managing Director

Annexure - III



Sl.No. Particulars Company Information
1 Corporate Identification Number(CIN) of the Company L27203OR1981GOI000920
2 Name of the Company National Aluminium Company Limited
3 Registered Office & Corporate Office NALCO Bhawan
Plot No. P/1 Nayapalli
Bhubaneswar -751013 Odisha India
4 Website
5 E-mail ID
6 Financial year reported FY 2016-17
7 Sector(s) that the company is engaged in (industrial activity code-wise) Bauxite Mines : Industrial Group Code 072
Alumina Refinery : Industrial Group Code 201
Aluminium Smelter : Industrial Gro up Code 242
Electricity Generation : Industrial Group Code 351
8 List of three key products/services that the company manufactures/provides 1. Alumina
• Calcined Alumina
• Alumina Hydrate
• Specialty Alumina & Hydrates
2. Aluminium
• Standard Ingots
• Sow Ingots
• T-Ingots
• Wire Rods
• Billets
• Flat Rolled Products (Coils Sheets & Chequered Sheet)
3. Electricity
9 a) Number of International Locations NIL
b) Locations in India a) Registered & Corporate Office Bhubaneswar – 751013 Odisha
b) Mines & Refinery Complex Damanjodi-763008 Odisha
c) Smelter Plant Nalco Nagar 759145 AngulOdisha
d) Captive Power Plant Angul 759122 Odisha
e) Port Facilities Port AreaVisakhapatnam– 530035 Andhra Pradesh
f) Wind Power Plants
i) Wind Power Plant-I : Gandikotta Andhra Pradesh
ii) Wind Power Plant-II : Ludarva Rajasthan
iii) Wind Power Plant-III : Devikot Rajasthan
iv) Wind Power Plant-IV : Jath Maharashtra
g) No. of Port Offices : 03 (Visakhapatnam Kolkata Paradeep)
h) No. of Regional Offices : 04 (New Delhi Mumbai Chennai Kolkata)
i) Branch Office : 01 (Bengaluru)
j) No. of Stockyards : 11 (Jaipur Faridabad Baddi Kolkata Bengaluru Chennai
Visakhapatnam Bhiwandi Silvassa Vadodara Delhi )


10 Markets served by the Company During the FY 2016-17 the following Aluminium markets were catered to by the company (in addition to India) : Bangladesh Brazil Korea Malaysia Singapore Vietnam Indonesia Taiwan and Nepal. Calcined Alumina produced in excess of the Company's own requirement is exported. During FY 2016-17 the following Alumina markets were catered to by the company (in addition to India) : China Egypt Iran UAE Oman Indonesia and Malaysia


Sl. No. Particulars Company Information
1 Paid up Capital as on 31.3.17 INR 966.46 crores
2 Total Turnover Gross Turnover: INR 7932.99 crores
3 Total Profit after Taxes INR 668.53 crores
4 Total Spending on Corporate Social Responsibility (CSR) a) A sum of Rs.30.01 crore was spent during the year on CSR activities. The amount required to be spent on CSR during 2016-17 was Rs.27.56 crore.
a) in INR :
b) As a percentage of average Net Profit during the three immediately preceding financial years (%): b) The actual expenditure on CSR activities indicated above is 2.18% of average Net Profit for the three previous Financial Years i.e. 2013-14 2014-15 & 2015-16.
5 List the activities in which expenditure on CSR as mentioned above has been incurred Expenditure incurred on CSR is broadly in the following areas:
a) Health Care Services
b) Promotion of Education
c) Sanitation
d) Drinking Water Facility
e) Environmental Sustainability
f) Infrastructure Development
g) Promoting Sports Culture and heritage
h) Skill development and livelihood generation


1. Does the Company have any Subsidiary Company/ Companies?


2. Do the Subsidiary Company/Companies participate in the BR Initiatives of the parentcompany? If yes then indicate the number of such subsidiary company(s) Not applicable

3. Do any other entity/entities (e.g. suppliers distributors etc.) that the Companydoes business with participate in the BR initiatives of the Company? If yes thenindicate percentage of such entity/entities? [ Less than 30% 30-60% More than 60%] Allthe initiatives of Business Responsibility(BR) are totally financed by the organization.No other entities ie. suppliers contractors etc. are involved in financing any BRinitiatives.


1. Details of Director/Directors responsible for BR as on 31.3.2017:

a) The board level CSR & SD Committee comprising of four independent Directors& three functional Director is responsible for BR as on 31.03.2017. During thereporting period the committee held two meetings on 30.07.2016 & 18.10.2016.

The Committee members as on 31.03.2017 are :

Name Designation DIN Number
Shri D. Mahanta Independent Director Chairman 01583516
Shri S. Sankararaman Independent Director 07346454
Shri Maheswar Sahu Independent Director 00034051
Ms. Kiran Ghai Sinha Independent Director 07726477
Shri K. C. Samal Director (Finance) 03618709
Shri V. Balasubramanyam Director (Production) 06965313
Shri B.K.Thakur Director (HR) 07557093

b) Detail of the BR head

i) Sustainable Development is spearheaded by Director (Production)

Sl.No. Particulars Details
1 DIN Number 06965313
2 Name Shri V.Balasubramanyam
3 Designation Director (Production)
4 Telephone Number 0674-2300660
5 e-mail ID

ii) CSR is spearheaded by Director (HR)

Sl.No. Particulars Details
1 DIN Number 07557093
2 Name Shri B.K.Thakur
3 Designation Director (HR)
4 Telephone Number 0674-2300430
5 e-mail ID

2. Principle wise (as per National Voluntary Guidelines) BR Policy/ Policies

The Nine Principles are mentioned below :

Principle 1 (P1): Business should conduct and govern themselves with Ethics Transparency and Accountability.
Principle 2 (P2): Business should provide goods and services that are safe and contribute to sustainability throughout their life cycle.
Principle 3 (P3): Business should promote the wellbeing of all employees.
Principle 4 (P4): Business should respect the interests of and be responsive towards all stakeholders especially those who are disadvantaged vulnerable and marginalized.
Principle 5 (P5): Businesses should respect and promote human rights.
Principle 6 (P6): Business should respect protect and make efforts to restore the environment.
Principle 7 (P7): Businesses when engaged in influencing public and regulatory policy should do so in a responsible manner.
Principle 8 (P8): Businesses should support inclusive growth and equitable development.
Principle 9 (P9): Businesses should engage with and provide value to their customers and consumers in a responsible manner.

a) Details of Compliance ( in Y/N )

Sl.No. Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
1. Do you have a policy/ policies for 9 NVG principles? Y Y Y Y Y Y Y Y Y
2. Has the policy being formulated in consultation with the relevant stakeholders? Y Y Y Y Y Y Y Y Y
3. Does the policy conform to any national/ international standards? If yes specify? (50 words) * Y Y Y Y Y Y Y Y Y
4. Has the policy been approved by the Board? * Y Y Y Y Y Y Y Y Y
Is yes has it been signed by MD/owner/CEO/appropriate Board Director? Y Y Y Y Y Y Y Y Y
5. Does the company have a specified committee of the Y Y Y Y Y Y Y Y Y
Board/ Director/ Official to oversee the implementation of the policy?
6. Indicate the link for the policy to be viewed online? ** Y Y Y Y Y Y Y Y Y
7. Has the policy been formally communicated to all relevant internal and external stakeholders? Y Y Y Y Y Y Y Y Y
8. Does the company have in-house structure to implement the policy/ policies. Y Y Y Y Y Y Y Y Y
9. Does the Company have a grievance redressal mechanism related to the policy/policies to address stakeholders' grievances related to the policy/ policies? Y Y Y Y Y Y Y Y Y
10. Has the company carried out independent *audit/evaluation of the working of this policy by an internal or external agency? Y Y Y Y Y Y Y Y Y

Y indicates ‘Yes'

* The Sustainable Development (SD) Policy captures the essence of all the nine NVGprinciples addressing key aspects of International Standards / Guidelines ie. ISO26000 GRI framework as applicable to our organisation. The SD Policy is approved by theBoard & signed by CMD and implementation of the same is done by operating ManagementSystems conforming to International Standards ie. ISO 9001 ISO 14001 ISO 50001 OHSAS18001 & the SA8000 standard based on the UN Declaration of Human Rights and theprinciples of international instruments ie. applicable ILO Conventions. All the fiveManagement Systems are subjected to periodic external audits by independent CertificationBodies besides regular internal audits . Financial systems also undergo internal auditsand statutory audits.

** Link of the SD Policy :

In addition to the Sustainable Development Policy we have also a few other specificpolicies company manuals & documents which reinforce the essence & spirit of thenine NVG principles. These are mentioned below :

NVG Principles Policies Manuals Documents
Principle 1: Ethics transparency& accountability 1. Code of Business Conduct and Ethics for Board Members and Senior Management
2. Fraud prevention policy
3. Whistle blower policy
4. Vigilance Manual
5. Marketing Guidelines
6. Purchase Manual
7. Contracts Manual
8. Stores Manual
9. Delegation of Power
10. Independent External Monitor Policy
Principle 2 : Sustainability in life-cycle of product Occupational Health & Safety Policy:
Principle 3: Employee well-being HR Manual
Principle 4: Stakeholder engagement Corporate Plan & Vision 2020
Principle 5: Promotion of human rights Social Accountability Policy
Principle 6: Environmental protection Environment Policy
Principle 7: Responsible public policy advocacy Corporate Plan & Vision 2020
Principle 8: Inclusive growth CSR Policy
Principle 9: Customer value Quality Policy

b) If answer to Sl.No. 1 at 2 a) against any principle is ‘No' please explainwhy: (Tick up to 2 options)

S.No. Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
1. The company has not understood the Principles
2. The company is not at a stage where it finds itself position to formulate and implement the policies specified principles NOT APPLICABLE
3. The company does not have financial or manpower resources available for the task
4. It is planned to be done within next 6 months
5. It is planned to be done within the next 1 year
6. Any other reason (please specify)

Since answer to the question at Sl.No.1 of 2(a) above is Yes for all the nine NVGprinciples the questions at 2 b) are not applicable.

3. Governance related to Business Responsibility (BR) :

3.1 Indicate the frequency with which the Board of Directors Committee of the Board orCEO to assess the BR performance of the Company. Within 3 months 3-6 months AnnuallyMore than 1 year.

During F.Y. 2016-17 the Committee of the Board held meetings twice i.e. 30.07.2016& 18.10.2016 to review & advise on BR performance i.e. CSR & SD activities ofthe organization. Frequency of meeting on an average during 2016-17 has been twice in ayear.

3.2 Does the Company publish a BR or a Sustainability Report? What is the hyperlink forviewing this report? How frequently it is published?

Yes both Business Responsibility (BR ) Report and Sustainable Development report arepublished.

Business Responsibility (BR ) Report which is mandatory as per SEBI requirements isprepared based on National Voluntary Guidelines and is published on annual basis as partof Annual Report. The weblink for 2015-16 report is:

A Sustainable Development (SD) Report is also prepared aligned with the internationalguidelines ie. Global Reporting Initiative Generation4 (GRI G4) requirements as voluntarydisclosure and is published on annual basis. The detailed SD Report for the FY 2015-16based on GRI G4 framework was also published. The weblink is:


Principle 1 Business should conduct and govern themselves with Ethics Transparency andAccountability. 1.1 Does the policy relating to ethics bribery and corruption cover onlythe company?


Does it extend to the Group/Joint Ventures/ Suppliers/Contractors/NGOs /Others?

Yes. A strong culture of values & ethics ensuring integrity and fairness in alldealings is reflected in our organizational practices. The Sustainable Development Policyoutlines our commitment towards integrity ethical practices and transparency. "TheCode of Business Conduct & Ethics for Board Members and Senior Management""Fraud Prevention Policy" "Whistle Blower Policy" "Code ofConduct for prevention of Insider Trading" highlight the priority accorded by theorganization to business ethics. CDA rules applicable to all executives whileCertified Standing Order applicable to all other employees also emphasise ethicalconducts. Any fraud or alleged fraud in any business transactions involving employees aswell as representatives of vendors suppliers contractors consultants service providersor any outside agency(ies) are dealt appropriately as per the above policies. Anyviolation irregularities etc. are dealt based on Nalco vigilance Manual & Guidelinesand directives circulated by CVC Chief Technical Examiner of CVC SEBI etc. In order tofurther bolster the transparency drive Integrity Pact is implemented for all contracts ofRs. 5 crore and above. Protection is also extended to any outsider complaining underPublic Information Disclosure and Protection of Informer (PIDPI) Scheme of Govt. of India.

1.2 How many stakeholder complaints have been received in the past financial year andsatisfactorily resolved by the management?

i) During F.Y.2016-17 100 stakeholder complaints related to bribery corruption andother irregularities were received by the Vigilance dept. taking stock of 19 pendingcomplaints from previous year out of total 119 complaints 116 complaints were dealt totheir logical end and were closed and 3 are pending at different stages of investigation.Detailed investigations of the complaints were carried out based on prescribed proceduresof Nalco Vigilance Manual with functional guidance and advice sought from CVC. Appropriateactions i.e. issuance of advisory letters and imposition of minor/major penalties etc.were taken in commensuration with the gravity of established irregularity. As apreventive vigilance measure suggestions for a few important systemic improvementsrelated to property return unauthorized absenteeism tender & contract grievancehandling of contract worker dispatch of finished product etc were also made during theyear.

ii) In total 301 number of investor complaints were received during the F.Y. 2016-17and all of them have been resolved satisfactorily. The detailed breakup of investorrelated complaints is given below :

Particulars Received during the year Complaints resolved Complaints pending
SCORES 04 04 Nil
Stock Exchanges 02 02 Nil
Individuals 295 295 Nil
TOTAL : 301 301 NIL

iii) In order to address the provisions of Right to Information Act (RTI) an officeris designated as Public Information Officer and is made responsible for providinginformation sought by stakeholders. During F.Y. 2016-17 a total of 197 applications werereceived in addition to the 17 pending ones as on 01.04.2016. As on 31.3.17: 176 querieshave been settled including 01 query transferred to other public authority while 12applications have been rejected and the balance 26 queries are in different stages ofinvestigation. As regards to "First Appeals" a total of 48 applications werereceived during the year while number of pending applications from previous yearwas NIL. The status as on 31.3.17 is : 44 appeals have been settled with no applicationtransferred while one appeal was rejected and 3 applications were pending.

Principle 2 : Business should provide goods and services that are safe and contributeto sustainability throughout their life cycle.

2.1 List up to 3 of your products or services whose design has incorporated social orenvironmental concerns risks and/or opportunities.

The three major products are : Calcined Alumina Aluminium Electricity.

Calcined Alumina is produced conforming to internationally recognized MetallurgicalGrade Alumina standard and while high purity primary Aluminium is produced conforming tothe P1020A specifications mandated for London Metal Exchange (LME) grade registration.Electricity generated by CPP caters to our Smelter plant and surplus power if any isexported to the grid. Comprehensive Environment impact assessment was carried out andEnvironment Management Plan approved by Regulatory Authority is implemented to mitigateany risks regarding negative impacts on environment or society emanating from productsprocesses & services. The initiatives taken as per the plan are monitored byregulatory agencies. Aspect Impact Study Hazard Identification & Risk Assessment andEmergency Management Plans are also drawn up with periodic reviews to addressenvironmental and social risks. On Site Emergency Management Plans etc. are implemented atunits to address Environmental and Social concerns in respect of our products &processes. Sustainable mining practices are adopted in the mines as per progressive Minesclosure plan.


Unit Products Environmental Risk areas Environmental concerns Opportunities
Alumina Refinery Calcined Alumina Envoronmental pollution comprising of • Fly Ash • Higher utilization of fly ash by motivating entrepreneurs for utilization of fly ash in areas such as :Utilisation of fly ash in manufacturing of fly ash bricks cement road construction dyke making filling up low lying areas in organization premises.
• Air Pollution
• Water pollution
• Land contamination With risk associated with HealthSafetyEnvironment & Ecology
• Lime grit • fly ash brick manufacturing using lime grit.
• Redmud • Redmud utilization for extraction of Iron concentrate and Gallium from Redmud.
• Waste water • Recycling of return water from ash pond and red mud pond for reuse in ash slurry pumping red mud slurry making and mud washing thus recycling caustic.
Smelter Aluminium Envoronmental pollution comprising of Generation of hazardous waste like : • i)Spent potlining utilization in
Cement industry and power plant is being explored..
• Air Pollution • spent potlining
• Water pollution • Dross ii)Aluminium Dross is recycled in pots.
• Land contamination
With risk associated with Health Safety Environment & Ecology • shot blasting waste etc. iii) Non recyclable hazardous waste like shot blasting waste furnace slags are sent to common HW landfill at Sukinda Jajpur.
• Stack Flouride & Particulate emission due to pot operation • Prevention of HF gas leakage from potline by using leak proof pot hoods. Absorption of Fluoride gases in alumina by dry scrubbing method in FTPs thus recycling of fluorine to process
• Spillage of bath material during different operating processes. • Provision of automatic shutoff valve and recycling of spillage bath.
• Generation of fluoride contaminated surface runoffs. • Recycling of water by collecting surface runoff in 3 holding pools and deflouriding by Emrion Nano based Defluoridation technology
CPP Electricity • Air Pollution • Fly Ash • Fly ash utilization in brick making cement plant road construction reclaimation of low lying area abandoned stone queries abandoned coal mines void Ash dyke & mounds etc.
• Water Pollution
• Land Contamination
• Waste water • i)Recycling of ash pond decanted water for ash slurry making. ii)Utilisation of STP water for horticulture & plantation.
Mines Bauxite • Air Pollution • Emissions • Heat recovery from Flue gas
• Noise pollution • Waste water • Recycling of treated waste water for dust suppression and horticulture activities
• Land Contamination • Dust
• Overburden • i)Reuse of overburden material for backfilling of mined out area
• ii)Rehabilitation of backfilled area with plantation thereby converting the barren mined out area into deep forest
• Explosive • Use of NONEL to delay blasting sequence to reduce noise level and use of Ripper Dozer where ever possible.

2.2 For each product provide the following details in respect of resource use (energywater raw material) per unit of product (optional). i) Reduction duringsourcing/production/ distribution achieved since the previous year throughout the valuechain.

Sustainable use of raw material conservation of energy and optimum use of water arethe thrust areas with regards to conservation of resource. The achievements duringthe last fiscal is depicted in Table B below:

Specific Consumption per unit of production Unit of Measurement Norm Previous Year Current Year
(F.Y. 2015-16) (F.Y. 2016-17)
Explosive consumption in Bauxite Mines Gram/MT 160 157 143
Coal for steam generation in SPP of Alumina Refinery Tonne/Tonne 0.650 0.658* 0.653
Electrical energy in Alumina Refinery KWH/Tonne 335 323.03 320.45
DC Energy consumption in Smelter KWH/MT 13500 13453 13448
Net carbon consumption for hot metal in Smelter Kg/MT 430+10 426 432
Coal consumption in CPP on net power generation Kg/KWH 0.90 0.905 0.906

* This is a restatement based on revised computation ii) Reduction during usage byconsumers (energy water) has been achieved since the previous year.

Though information on use of energy and water at consumers facility is not captured atour end but supply of consistent quality products by us enables the consumers ie. mostlysecondary producers and downstream facilities to have smooth operations in theirplant resulting in reduction of rejects & waste. This facilitates the consumers tooptimally plan their resource requirement resulting in economy of raw material energy andwater. Besides enhanced use of aluminium in manufacturing of railcoaches & automobilesand in the aerospace & packaging sectors contributes to conservation of fuelresulting from reduction in weight. Recyclability of aluminium also offers tremendousscope of application in civil construction power transmission & strategic sectorslike defense with resultant conservation of energy water etc.

2.3 Does the company have procedures in place for sustainable sourcing (includingtransportation)?


Sustainable sourcing of Bauxite & Energy are ensured by locating the AluminaRefinery & Smelter Plant close to captive sources . The Alumina Refinery is locatedclose to our captive Mines ie. the Panchpatmali Bauxite Mines & energy-efficienttransportation of Bauxite to the Refinery is made possible by a single flight longdistance cable belt conveyor. Likewise our Smelter is situated in the vicinity of theCaptive Power Plant which in turn is located close to the coal mines of M/s MCL oursource as per the prevailing Fuel Supply agreement (FSA). Coal is supplied to Our CaptivePower Plant by a dedicated merry go round rail system and power is evacuated to Smelterthrough EHT transmission lines there by reducing transmission loss and minimizingtransmission disruption. Any gap in coal requirement & availability through FSA ismade up through procurement through E-Auction or bridge linkage or both as applicable .The option of using imported coal is also available & is exercised depending on theexigency of requirements & outcome of detailed cost-benefit analysis. Allocation ofnew deposit of about 79 Million Tonnes of Bauxite at Pottangi Mines & Utkal D& E coal blocks with coal reserve of 200 Million Tonnes has the potential tostrengthen sustainable sourcing of the major inputs ie. Bauxite and Coal. All othercritical inputs are procured through competitive bidding from multiple suppliers andvendors enhancing our vendor base and thus addressing the risk of over dependence on afew suppliers. In line with prevailing Govt. guidelines preference is also given to localvendors in some sectors. Nurturing of local vendors is expected to develop sustainablesource of supplies while contributing to local economic development. Import of Causticsoda is done through our dedicated port facility at Vizag with fully mechanized loadingand unloading facility. Our own railway siding at Budhapank Angul and Damanjodifacilitate rail transportation of material which leads to less emissions.

2.4 Has the company taken any steps to procure goods and services from local &small producers including communities surrounding their place of work? If yes what stepshave been taken to improve their capacity and capability of local and small vendors?

Ancillary Development Policy of the organization promotes development of local vendors.The MSME facilitation cells at units implement the policy by providing guidance inTechnical Commercial areas to these vendors to improve their competitiveness.

The goods and service which can be offered by MSME units are listed and displayedprominently and web hosted in our website for wider circulation and awareness. Displayhalls at M&R complex and S&P complex display the products along with technicalknowhow for developing the product & information regarding annual requirement and lastprocurement price etc. are provided to MSME entrepreneurs. Relaxation in tendering processie. waiving of tender security and tender fees etc are extended to such units to encouragethem to participate in bidding. Our purchase manual is suitably amended to extend purchasepreference to MSME units quoting in the band of 15% of lowest quoted price for theproducts and service earmarked for them. List of Goods and Services which can be procuredfrom MSEs are available in the our website

• The procurement of products produced and services rendered by MSE ( Micro andSmall Enterprises) units of Odisha inclusive of Ancillary Units during 2016-17 was Rs285. 88 crores as against Rs 236.64 Crores of last financial year while the same from MSEunits (including those from outside Odisha) was worth Rs.414.95 crores against previousyear procurement of Rs 322.33 crores . The procurement from MSEs during the year was 21%of total procurement of goods and services made by Nalco . The total procurement from SC/ST MSEs stood at Rs 9.36 Crores which is 0.47% of the total procurement made by Nalcoduring FY 2016-17. For FY 2017-18 the target for procurement of products produced andservices rendered by MSEs has been set at Rs. 415.80 Crores.

• Two Sub-PLAC (Plant Level Advisory Committee) meetings were conducted during theyear 2016-17 at M&R Complex on 23.07.2016 & 04.11.2016 in association with MSMEDI Rayagada and DIC Koraput. The 20th PLAC meeting in this regard was conducted by Nalcoon 27.1.2017 at Bhubaneswar. State Level Vendor Development cum Buyer- Seller meet wasorganized at S&P Complex on 28.9.2016 in association with Orissa Assembly of Small andMedium Enterprises (OASME) and MSME DI Cuttack and in M&R Complex on 04.10.2016 inassociation with MSME DI Rayagada and DIC Koraput.

• Our participation in various MSME exhibitions and conventions also provides themuch needed exposure and encouragement to many vendors. During the year we participatedin the " 30th Annual State Level Convention - 2016" organised by Odisha Assemblyof Small & Medium Enterprises ( OASME)" Cuttack on 12th August 2016 and washonored with the "Best Mother Plant" award in recognition of our contributiontowards the cause. Also Nalco bagged the "Best Display Award" in the Mother

Plant category in the Three day long National Vendor Development Programme-cum-Industrial Exhibition and Buyer- Seller meet programme "MSME Expo Odisha - 2016"organised by MSME Development Institute Ministry of MSME Govt. of India from 5th to 7thDec2016 at Kila Maidan Cuttack

2.5 Does the company have a mechanism to recycle products and waste? If yes what is thepercentage of recycling of products and waste?


We recycle process waste metal rejects and waste products effluent & industrialdrain water decanted water from Ash pond and Redmud Pond to maximum possible extend. Wealso practice rain water harvesting ground water charging and sewerage water treatment.In the year 2016-17 16163255 cubic metre water from CPP ash pond & 9293695 cubicmeter water from Refinery ash pond and 3473918 cubic meter water from Refinery Red MudPond was recycled. Some of our achievements in this direction is presented in the tablebelow.

TABLE C : Recycling/ Reuse of waste
Unit Utilisation Percentage
Bauxite Mines Overburden utilized for concurrent reclamation of mined out areas 100%
Alumina Refinery Caustic Soda recycled from waste redmud 5.76%
Ash utilization 102.72%
Recycling of Ash pond water 98.31%
Smelter Recycling of Aluminium scrap 100%
Aluminium dross recycled as input to process 87.87%
Recycling of spent anode 100%
CPP Ash Utilisation 37.88%

Principle 3: Business should promote the wellbeing of all employees. 3.1 Pleaseindicate the total number of employees :

As on 31.3.2017 the total strength of employees in regular employment is 6950.

3.2 Please indicate the Total number of employees hired ontemporary/contractual/casual basis as on 31.3.17 :

Six persons are employed on direct contract basis in the Hospitals and CivilEngineering function. Job Contractors working in areas like hospitality maintenancesanitation conservancy and project activities etc. have engaged 9697 workers to dischargetheir contractual obligations.

3.3 Please indicate the Number of permanent women employees :

As on 31.3.2017 the strength of permanent women employees is 354.

3.4 Please indicate the Number of differently-abled permanent employees :

Total strength of differently-abled persons on regular employment as on 31.3.17 is 86.3.5.

Do you have an employee association that is recognized by management.

Yes. There are 29 registered trade unions in different units & offices. The tradeunion having majority membership in the unit is given the status of a recognised Union.Total five trade unions one each in the four production units & Corp. Office areoperating as recognized trade unions. We also have three officers' associations and threeSC & ST welfare associations.

3.6 What percentage of your permanent employees is members of this recognizedemployee association?

About 99% non-executive employees are members of the Registered Unions. As far as therecognised Unions are concerned 52% of unionized employees are members of theseUnions.

3.7 Please indicate the Number of complaints relating to child labour forcedlabour involuntary labour sexual harassment in the last financial year and pending ason the end of the financial year. The status is :

S l . No. Category No. of complaints pending as on 31.03.2016 No. of complaints filed during the F.Y. 2016-17 No. of complaints pending as on 31.03.2017
1 Child labour/ forced labour/ involuntary labour Nil Nil Nil
2 Sexual harassment 01 01 01

As on date the above complaint on sexual harassment is closed. No such complaint ispending as on now.

3.8 What percentage of your under mentioned employees were given safety & skillupgradation training in the last year?

Permanent Employees; Permanent Women Employees; Casual/ Temporary/Contractual Employees; Employees with disabilities.

The status related to above training is placed below :

Category of employees Present Strength Percentage of persons undergone Safety and Skill Upgradation Training
Permanent Employees 6950 42 %
Permanent Women Employees 354 43 %
Casual/ Temporary/ Contractual Employees 06 08%
Employees with Disabilities 86 19%

Principle 4 : Business should respect the interests of and be responsive towards allstakeholders especially those who are disadvantaged vulnerable and marginalized.

4.1 Has the company mapped its internal and external stakeholders?

Yes. Internal and external stakeholders have been identified. In addition to mappinginternal stakeholders ie. employees we have also mapped external stakeholders ie.Customers suppliers investors Government and their representatives and committeesLocal Communities Regulatory authorities Service providers & job contractworkers.Concerns and perceptions of these internal & external stakeholders arecaptured and periodically updated through formal or informal channels of communication tofocus on the relevant issues and chalk out suitable action plan for response.

4.2 Out of the above has the Company identified the disadvantaged vulnerable andmarginalized stakeholders.

Yes. Vulnerable marginalised and disadvantaged stakeholders are identified inperipheral areas of our Mines and Plants situated in localities where the populationmostly belong to the socio-economically disadvantageous strata

. 4.3 Are there any special initiatives taken by the company to engage with thedisadvantaged vulnerable and marginalized stakeholders.

The special initiatives aimed towards improving the lives of those who aresocio-economically marginalized & economically disadvantaged comprise of issuesprioritized by CSR wing with the programs ranging from large-scale long-term projects toone-off need-specific initiatives as mentioned below:

i. Health Care facilities for peripheral villages through Mobile Heath Unit (MHU) andOut Patient checkup facilities

ii. Residential Education for tribal students of peripheral villages at Damanjodi incollaboration with reputed schools at Koraput Jeypore and Bhubaneswar

iii. "Nalco ra Aliali Jhia" scheme providing education support to 181meritorious girl students belonging to Below Poverty Line category from peripheral areasof plant operation iv. Solar street light installed in 8 peripheral villages of Damanjodi

v. Provision of water facility in 17 peripheral villages of Damanjodi

vi. Skill Development programmes to enhance employability of the local unemployed youthand contract workers.

Principle 5: Businesses should respect and promote human rights.

5. 1 Does the policy of the company on human rights cover only the company or extend tothe Group/Joint Ventures/ Suppliers/Contractors/NGOs/Others?

The policy on Human Rights not only covers all our employees but also is extendedto service providers of all the outsourced jobs. Human Rights practices covered in themandatory Human Resource Management practices mandated in the various applicable statutesi.e. Factories Act 1948 Industrial Disputes Act 1947 Mines Act 1972 Contract Labour(R&A) Act 1970 Payment of Gratuity1972 statutes are implemented across the supplychain and necessary screening & evaluation is done for suppliers and contractors.Also in the job contract conditions important human rights concerns i.e. child labourforced and compulsory labour are suitably addressed to restrain any human rightsviolation. Our units including Corporate Office is certified to SA 8000.

5.2 How many stakeholder complaints have been received in the past financial year andsatisfactorily resolved by the management?

One complaint related to sexual harassment was received during the year i.e. 2016-17and investigation was in progress as on 31.03.2017. As on date the complaint is closedand no such complaint is pending(ref: 3.7). Status of complaints from other stakeholdersare outlined at 1.2.

Principle 6: Business should respect protect and make efforts to restore theenvironment.

6.1 Does the policy related to Principle 6 cover only the company or extends to theGroup/Joint Ventures/Suppliers/ Contractors/NGOs/others

Corporate Environment Policy of the organization affirms that it assigns highimportance to promotion and maintenance of a pollution free environment in all itsactivities by using non-polluting and environment friendly technology. EnvironmentManagement System conforming to the International Standard ISO 14001 is implemented in ourunits and the Corporate Environment Policy is applicable to all units offices . Unitsimplement the environment policy with specific environment objectives identified in theirareas of operations. Suppliers and Contractors are also brought into the ambit of thepolicy by including the relevant clauses in NIT and Workorders.

6.2 Does the company have strategies/ initiatives to address global environmentalissues such as climate change global warming etc? Y/N. If yes please give hyperlink forwebpage etc.

Initiatives taken to address global environment issues such as climate change globalwarming is highlighted below:

• Three Wind Power Plants –

i) 50.4 MW at Gandikota Andhra Pradesh

ii) 47.6 MW at Jaisalmer Rajasthan

iii) 50 MW at Devikot Rajasthan are in operations while the fourth one ie. 50.4 MW atJath Sangli Maharashtra is commissioned

• Three Roof-top Solar Photo-Voltaic Plants of capacity 160 KWp 100 KWp & 50KWp are operating at Corporate Office NALCO Township and Nalco Research and TechnologyCentre (NRTC) respectively at Bhubaneswar.

• Setting up of 50 MW solar power plant & 50 MW wind power plant at suitablelocations in India is planned.

• The contract for setting up of a 20 MW Utility scale Solar PV power project inMadhya Pradesh is under consideration.

• The feasibility reports for setting up roof top solar plants at variouslocations of Nalco at Damanjodi Angul & Vishakhapatnam are under study.

Under the Perform Achieve and Trade (PAT) scheme a market based mechanism forpromotion of energy efficiency the Bureau of Energy Efficiency (BEE) had set targets forreduction of Specific Energy Consumption . During the year total 36119 Energy SavingCertificates (EScerts) were issued in favour of our organization in recognition ofachieving results better than the assigned energy saving targets for PAT cycle1 given toboth the Designated Consumers ie. M&R and S&P complex. Various initiatives in theunits are also in progress for meeting PAT cycle2 targets set for the years ie. 2016-19.The major initiatives on energy conservation taken at different units are highlighted inthe annual report.

6.3 Does the company identify and assess potential environmental risks?

Yes Environmental Impact Assessment studies are conducted for all our productionfacility and appropriate Environment Management plans are developed. In addition to thisenvironment impacts of key business activities are revised every year to identify andassess potential environment risks and to take steps for mitigating the identifiedimpacts. Similarly in the Mines a well formulated mining plan for sustainable miningpractice is implemented since beginning. The progressive Mine Closure Plan & the Mineclosure plan aims for preservation of the ecology and restoration of mining site to itsoriginal shape. Site specific wild life conservation and management plan helps inprotection of forest creatures. Aspect-Impact analysis is carried out for Mines and allplants and appropriate mitigation measures are taken for significant impact areas.These provide a basis for various environment initiatives. Risks are identified overproduct lifecycle and detailed at 2.1 above. Perfluorocarbons (PFCs) i.e.tetrafluoromethane (CF4) and hexafluoroethane (C2F6) emissions produced in the primaryaluminium reduction process at Smelter during anode effects is monitored very closely. TheSmelter Plant is equipped with the most advanced ALPSYS pot regulation system which helpsin reducing the frequency and duration of anode effect by timely dosing alumina into thepot. For the year 2016-17 the PFC emission from Smelter Potline has been estimated usingAP (Aluminium Pechiney) overvoltage method and the values are given below:

CF4(kg/T Al) 0.0330
C2F6(kg/T Al) 0.0040

6.4 Does the company have any project related to Clean Development Mechanism (CDM)? Ifso provide details thereof. Also if yes whether any environmental compliance report isfiled?

50.4 MW Wind Power Plant at Gandikota and 47.6 MW Wind Power Plant at Jaisalmer aretaken under Clean Development Mechanism (CDM) of the United Nations Framework Conventionon Climate Change (UNFCCC).The wind power projects are grid connected renewable energyprojects that generate electricity through utilization of wind energy and help insignificant reduction of GHG emissions.

50.4 MW Wind Power Plant at Gandikota - CDM project

CDM Project activity has obtained Host Country Approval (HCA) from Ministry ofEnvironment and Forests GoI who are the National CDM Authority (NCDMA) in India. Theproject activity has been validated by (UNFCCC) accredited Designated Operational Entity(DOE). Registration of the project with UNFCCC is under process. Estimated amount ofannual average GHG emission reductions equivalent. 85927 tons of CO2

47.6 MW Wind Power Plant at Jaisalmer - CDM project

CDM Project activity has obtained Host Country Approval from National CDM Authority(NCDMA) Ministry of Environment and Forests Govt. of India. Registration of the projectwith UNFCCC is under process. Estimated amount of annual average GHG emission reductions83426 tons of CO2 equivalent.

6.5 Has the company undertaken any other initiatives on – clean technology energyefficiency renewable energy? If yes please give hyperlink for webpage etc.

Yes. Steps are also taken for green energy generation i.e. Wind Power & Solar PowerIn addition to the Wind Power Plants mentioned above the other initiatives implementedare:

• One Wind Power Plant of 50 MW at Devikot Jaisalmer Rajasthan is in operationwhile one 50.4 MW plant at Jath Sangli Maharashtra is commissioned.

• Three Rooftop Solar Power Plants of capacity 160 kWp 100 kWp & 50 kWp arein operation at the Nalco Corporate Office Nalco township & Nalco Research andTechnology Centre (NRTC) Gothapatna at Bhubaneswar.

• Setting up of 50 MW solar power plant & 50 MW wind power plant at suitablelocations in India is planned.

• The contract for setting up of a 20 MW Utility scale Solar PV power project inMadhya Pradesh is under consideration.

• Feasibility reports prepared for setting up rooftop solar plants at variouslocations of Nalco at Angul Damanjodi & Vishakhapatnam are under study.

6.6 Are the Emissions/Waste generated by the company within the permissible limitsgiven by CPCB/SPCB for the financial year being reported?

Emissions/ waste generated by the operating units of the company are within thepermissible limits prescribed by CPCB/ SPCB. The environmental statement containing suchinformation is submitted to regulatory authority every year.

6.7 Number of show cause/ legal notices received from CPCB/SPCB which are pending (i.e.not resolved to satisfaction) as on end of Financial Year.


Principle 7: Business when engaged in influencing public and regulatory policy shoulddo so in a responsible manner.

7.1 Is your company a member of any trade and chamber or association? If Yes Name onlythose major ones that your business deals with:

Yes The major ones are :

1. Aluminium Association of India

2. Standing Conference of Public Enterprise (SCOPE) New Delhi

3. Federation of Indian Mineral Industries (FIMI) New Delhi.

4. National Safety Council Mumbai

5. TQM Division of CII

6. Quality Circle Forum of India Secunderabad

7. Indian Ceramic Society Kolkata

8. Confederation of Indian Industry (CII ) New Delhi

9. Utkal Chamber of Commerce & Industries Bhubaneswar 10. Engineering ExportPromotion Council Kolkata 11. Federation of Indian Export Organisation New Delhi 12.International Chamber of Commerce Delhi 13. Chemical and Allied Products Export PromotionCouncil Kolkata

7.2 Have you advocated/lobbied through above associations for the advancement orimprovement of public good? If yes specify the broad areas (E.g. Governance andAdministration Economic Reforms Inclusive Development Policies Energy security WaterFood Security Sustainable Business Principles Others)

Yes. Broad areas taken up for public good are :

> Avenues for enhancement of utilization of fly ash

> Climate Change Action Plans

> Environmental Stewardship

> Inclusive Development & Equitable Growth

> Skill Development & Employment Generation

> Enhancing use of Aluminium in various sectors as sustainable and strategicmaterial for the future.

> Sustainable mining practices including mineral conservation

> Energy Water Mineral conservation

> Safety & Health at workplace

> Economic Leadership by betterment of industries.

> Employee involvement and Work life balance

Principle 8: Businesses should support inclusive growth and equitable development

8.1 Does the company have specified programmes/ initiatives/projects in pursuit of thepolicy related to Principle 8? If yes details thereof.

Yes. Specific initiatives taken up during 2016-17 in the peripheral villages in orderto promote inclusive growth are : i) Promoting education by sponsoring tribal childrenfor formal education in reputed residential schools ii) Providing financial assistance tomeritorious and poor girl students of peripheral villages under "Nalco Ki Ladli"scheme. iii) Providing health care services at the peripheral villages at our units atDamanjodi and Angul iv) Constructing toilets in schools under Swachh Vidyalaya Abhiyan v)Drinking water supply projects vi) Infrastructure development work vii) Plantation workviii) Promotion of culture and preservation of heritage

8.2 Are the programmes/projects undertaken through in-house team/ownfoundation/external NGO/government structures/any other organization?

The CSR activities of the Company are undertaken through Nalco Foundation directly byNalco and Rehabilitation and Periphery Development Advisory Committees (RPDACs) i. NalcoFoundation the CSR wing of NALCO is focused on development of villages located within 15kms. radius of operational areas and has adopted a project based accountability approachthrough baseline surveys ensuring participation of the stakeholders in decision makingprocess. ii. Some of the CSR projects are also being executed by Nalco directly. iii. TheGovt. of Odisha has constituted Rehabilitation & Periphery Development AdvisoryCommittee (RPDAC) for Angul Sector and Damanjodi Sector under the Chairmanship ofrespective Revenue Divisional Commissioner for Peripheral Development programmes. Membersof the Committee comprise of District Collector Local MLAs MPs people's representativesand representatives from Nalco. RPDAC selects the projects to be taken up allocate fundand monitor overall execution of the projects.

8.3 Have you done any impact assessment of your initiative? i. Social impactAssessment of projects of Nalco Foundation was conducted by Central University of OdishaKoraput during the year 2012 ii. Recently a MoU is signed with UtkalUniversityBhubaneswar to carry out the Social Impact Assessment(SIA) of the CSR projectsimplemented by Nalco.

8.4 What is your company's direct contribution to community development projects-Amount in INR and the details of the projects undertaken.

During the financial year 2016-17 a total amount Rs.30.01crore has been spent for CSRactivities. Some of the major activities are:

i) In total 755 students from periphery villages of Damanjodi and Pottangi mines areahave been sponsored for formal education in 3 residential schools viz. a) KalingaInstitute of Social Science (KISS) Bhubaneswar;

b) Koraput Development Foundation (KDF) Jeypore;

c) Bikash Vidyalaya Koraput. Also 4129 students from peripheral areas of ouroperations at Damanjodi and Angul are provided education in company-aided schools.

ii) In the "Nalco ra Aliali Jhia" scheme financial assistance of Rs.6000/(Rupees Six thousand) per student per year is extended to students for meeting theirexpenses towards uniform & study materials etc commencing from class VIII tillClassX. Every year 100 such girl students are admitted in Class VIII (50 students fromAngul area and 50 students from Damanjodi area). During FY 2016-17 181 students weresupported under this Scheme. This is in line with Government objective of "BetiBachao & Beti Padhao".

iii) Enhancement of skill of youth as per requirement in the districts where companyis operating.

iv) Nalco Foundation with involvement of HelpAge India Wockardt Foundation &Lions Club is operating Mobile Health Units(MHUs) in order to provide free healthcareservices to the community at their doorstep. Total 7 MHUs 4 in M&R Complex Damanjodiand 3 in S&P Complex Angul are extending this primary health service to the villagerswhich include free medicine diagnostics service and awareness building i.e.Information Education Communication(IEC) activities at the doorstep of local communitiesin the periphery villages. In addition to above one specialist OPD centre meant forout-patient treatment of people of periphery village in Angul sector is also operating inS&P Complex. The centre is functioning with a qualified doctor & para medicalstaffs. During the year 2016-17 total 112809 patients have been treated through above.

v) In response to Government of India call for Swachh Iconic Shrine development theIconic Shrine "Puri" is taken up for development as a multi stake partner totransform it to a Swachh Pilgrimage Place.

vi) Action has been initiated to make 11 peripheral villages of S&P complex Anguland M&R complex Damanjodi open defecation free.

vii) The Company has distributed 4 lakh bacteria free drinking water pouches fordrinking water facility to the pilgrims/devotees during Car Festival 2016 at Puri.

viii) Supply of Drinking water through tanker to periphery villages of S&P complexAngul during summer

ix) Provision of safe drinking water facility in 17 periphery villages of M&Rcomplex by installation of bore well with pumping facility.

x) The Company has extended financial assistance for PARAB-Koraput a State leveltribal festival organized by district council for culture.

xi) Solar Street light have been installed in 8 periphery villages of M&R complex.

xii) The Company has undertaken projects for infrastructural development work inperiphery villages and plantation in periphery of operating units as well as in and aroundBhubaneswar.

8.5 Have you taken steps to ensure that this community development initiative issuccessfully adopted by the community?

In collaboration with Government bodies NGOs and with other Programme ImplementingAgencies (PIA) community initiatives in the areas of health education livelihoodrural development etc. are planned and implemented.

Principle 9: Businesses should engage with and provide value to their customers andconsumers in a responsible manner. 9.1 What percentage of customer complaints/consumercases are pending as on the end of financial year i.e. 31st March 2017?

A laid down procedure in line with ISO 9001 requirements is in place for resolution ofcomplaints which may arise from time to time with regard to various issues such aspayment late delivery quality quantity or documentation etc. Depending upon the natureof the complaint NALCO's representatives from Regional Offices and/ or technicalpersonnel from the plant visit the customer's premises to examine the complaint and makeon-the spot assessment. In the instances where a compensation/ claim is made by thecustomer on account of defects a committee is formed who after all the necessarychecks put up their proposal recommending the appropriate amount of compensation if any.The same is paid to the customer after approval of competent authority as a onetimesettlement. The customer complaints are also reviewed for improvement of our processes andproducts.

Customer Complaints pending as on 31.3.2017 is 22.2 % of total customer complaintspending as on 31.3.2016 & received during FY:2016-17 ie. 18 numbers. Status report onCustomer Complaints as on 31.3.17 is:

Complaints pending as on 31.03.2016 2
Complaints received during FY 2016-17 16
Complaints disposed during FY 2016-17 14
Complaints pending as on 31.3.17 4
Percentage of Customer Complaints Pending on 31.3.17 22.22%

Out of the 4 pending complaints one complaint is closed as on 30.06.2017.

9.2 Does the company display product information on the product label over and abovewhat is mandated as per local laws?


The product information on product label as mandated by law is sufficient to define ourproduct in the market and adequate for the customer to make informed choice . ForAluminium metal the product grade stack no. bundle no. net weight is displayed on theproduct label. In case of Rolled Products name of the Company & production unit andplace Coil No Grade Size (Thickness X Width) in mm Net Weight (in kgs.) Signature ofthe inspecting authority Date of Packaging No. of sub-stacks and total no. of sheets perpacket (for Rolled sheets only) is displayed on the product label.

9.3 Is there any case filed by any stakeholder against the company regarding unfairtrade practices irresponsible advertising and/or anti-competitive behaviour during thelast five years and pending as on end of financial year. If so provide details thereof.


There is no litigation by any stakeholder against the company regarding unfair tradepractices irresponsible advertising and/or anticompetitive behavior during the last fiveyears.

9.4 Did your company carry out any consumer survey/ consumer satisfaction trends?


Capturing the perception of customers and consumers on our products and associatedservice is given top priority in our organization. Our Quality Policy profess meeting theneeds and expectations of the customer and consistently improving our system and workethos as the chosen path for achieving excellence in business. We collect feed back aboutour product and service both from formal and informal channels and constantly work on itto enhance our brand image.

Customer satisfaction survey is conducted biannually every financial year for the twosix-monthly periods ending September & March in order to capture customers'perceptions over the period. The average customer satisfaction Index over the yearcomputed based on response obtained from customers is above the target. The trendobserved in customer satisfaction index is taken as one of the basic indicator toasses our own performance in marketing front and is utilized to develop strategy forfurther market penetration.



A. Conservation of Energy :

(i) The steps taken or impact on Conservation of Energy:

Your Company has always been assigning high importance to the energy conservationand has been utilizing the state-of-the art technologies for maximizing energy efficiencyacross all its production units. Your Company is carrying out energy conservation measuresthrough Small Group Activities (SGAs) by enhancing the energy efficiency in its differentactivities and processes.

Energy conservation measures adopted in different units are as under: Bauxite Mines:

1. Replacement of 320 nos. of 70 W well glass HPSV fittings 80 nos. of 250 W floodlight HPSV lamps 20 nos. of 250 W HPSV street light fixtures 89 nos. of CFLlamps 2300nos. of T8 tube light fitting (40 W) with corresponding LED equivalent has been done. Asaving of electrical energy of approx. 290000 KWh ( 25 TOE) annually is being expected.

2. Replacement of 06 nos. of old (installed since 2000-2002) and inefficient airconditioners of 1.5 TR capacity with latest BEE 5-Star rated air conditioners (with R410 Aenvironmental friendly refrigerant). A saving of electrical energy approx. 2250 KWh ( 0.2TOE) annually is being estimated.

Alumina Refinery:

1. Replacement of Dump steam control valve in boiler.

2. Optimization of agitator speed in chemical process tanks by suitably downsizing themotor.

3. Installation of VFD for 50 Nos. of pumps in Evaporation plant is being carried out.Initial infrastructure work has been completed valuing Rs.600 lakhs. VFD installationvalued Rs.300 lakhs is balance and shall be completed in 2nd Qtr of 2017-18.

4. Energy saving by Re-routing of pipe lines to achieve desired flow and pressure.

5. Use of indirect steam heating in PPTR tanks instead of direct steam heating.

6. Use of additive with coal firing is being done to achieve better combustionefficiency of coal. Successful trials have been carried out in all 05 boilers resultingwith better boiler efficiency.

7. Installation of Magnetic resonator in HFO line of Boiler no 4; it gives a saving of6.1% of HFO. Qty saved in this year= 88 KL.

8. Installation of Energy efficient pumps in ash slurry pump house and in place ofexisting SL Cyclone feed pumps.

9. Use of separate hydro-test pump of 75 KW for hydro testing of boilers instead ofusing BFP of 1130 KW during that time.

10. 10 numbers of flood lights replaced with LED lights. 9320 numbers of tube lightsof 57 Watts with 18 Watts LED tubes. Total Energy saved in Alumina Refinery during 2016-17vis--vis 2015-16 for equivalent production is 45636.19 TOE. Smelter Plant:

1. During the year the specific DC energy consumption in Smelter Plant has reduced to13448 KWHr/MT of Hot Metal lower by 5KWHr/MT as compared to last year's figure of 13453KWHr/MT. This could be achieved by use ALPSYS Pot regulation system in all Pot Linesreducing anodic problems reducing wedge drop & stem beam drops use of graphitizedcathode blocks slotted anodes and use of increased Anode stub hole and pin length inrunning pots. All these activities resulted in higher Current Efficiency thereby reducingSpecific DC Energy Consumption by 390467 KWHr (33.57 TOE).

2. Energy conservation projects taken up at Smelter are; a) Installation of two EnergyEfficient Compressors: - 1505184 KWH (129.4 TOE). b) Installation of Air-receiver inPTMs screw compressor: - 5745 KWH (0.49 TOE). c) Replacement of 20 nos. standard LTmotors with high energy efficient IE-2 class motor:- 69723 KWH (6 TOE). d) Replacement of24 nos. HPSV high bay lights with LED lamps: - 9472 KWH (0.81 TOE).

All these contributed to total annual energy savings of 1980591 KWHr i.e. 170.27 TOE.

Captive Power Plant:

1. All six nos. of conventional fan motors of cooling Tower of Unit #6 weresuccessfully replaced with energy efficient VFD controlled motors. This results in annualsaving in energy consumption by 340 TOE.

2. All the conventional Glass Reinforced Plastics blades of cooling Tower Fans of Unit#9 & #10 (Total of 12 nos. of fans) were replaced with Fibre Reinforced Plastics. Thiswill result annual saving in energy consumption by 170 TOE.

3. Total 965492 KWH (983.02 TOE) of energy was saved during the year 2016-17 due toinstallation of energy efficient lighting system like LED street light fitting and LEDtube lights electronic tube light ballast LED high bay fitting LED well glass fittingetc.

4. Rain water harvesting system consisting a pond (50000 M3 Capacity) & pump(2X250 M3/Hr capacity) was commissioned on 28th September 2016. This has helped to reducethe water drawl from river by 273387M3 during 2016-17.

Energy conservation projects proposed or in progress during 2016-17 Mines:

1. Replacement of 400 nos. of 250 W HPSV street lights & 300 nos. of 150 W HPSVstreet lights has been planned & are in procurement stages. With completion of thesame in 2017-18 a saving of electrical energy approx. 403398 KWh ( 35 TOE) annually isbeing expected.

2. All the new lighting installations proposed in South Block for new haul roadillumination & area illumination are based on LED technology which shall reduce theimpact on energy drawl for new establishments.

Alumina Refinery:

Replacement of the old vent steam control valve with new and improved design valvehas been planned. Procurement action is in progress.


1. Replacement of existing Air Pre heater (APH) in boiler of one unit with improved AirPre heater (APH). This will improve heat transfer from flue gas to combustion air therebyenhancing combustion efficiency and increase in waste heat recovery .There will be energysaving of 1560 TOE annually.

2. Replacement of one energy efficient screw compressor in place of old reciprocatingcompressor. This will save energy by 242 TOE per annum.

3. Equipment wise energy consumption will be monitored by installing 600 nos. of energymeters. These energy meters will be integrated through an Energy Management System. TheEnergy Management System will help in identifying the higher energy consuming equipmentsand facilitating management decision for replacement of such equipments.


1. Intelligent flow control system for compressed air network.

2. Replacement of TFLTubes with LED Lamps.

3. Installation of 2nd slot cutting machine in Rodding shop-2.

4. Semi-automatic Firing control system for one no. of M&H furnace of Rollingplant.

5. Modification of existing scrap melting furnace in Pot line.

6. Sealing of Solid Metal Charging Doors of furnaces in Cast House-A

(ii) Steps taken by the company for utilizing alternate sources of energy: YourCompany is operating following Wind & Solar Power Units:

1. 50.4 MW Wind power plant at Gandikota Andhra Pradesh.

2. 47.6 MW Wind power plant at Ludarva Rajasthan.

3. 50.0 MW Wind power plant at Devikot Rajasthan.

4. 260 KWp Rooftop Solar Power plant at Corporate Office and NALCO Township.

During the year your Company has generated 205.722 MU from wind power & 0.294 MUfrom Solar. In addition to above one 50.4 MW Wind power plant at Jath SangliMaharashtra is commissioned.

(iii) The capital investment on energy conservation equipments Mines

1. Procurement & replacement of conventional lamps/ luminaries with LED fittings:Rs.37.75 lakhs.

2. Procurement & replacement of air conditioners: Rs.2.2 lakhs.

3. Procurement of portable power analyzer for accurate monitoring & analysis ofelectrical energy drawl: Rs. 4.7 lakhs.

Alumina Refinery

Total amount spent on Energy conservation measures in the year for Refinery isRs.1177 lakhs. Smelter

1. Installation of 2 Energy Efficient Compressors- Rs 358.5 Lakhs.

2. Installation of Air-receiver in PTMs screw compressor-1.9 Lakhs.

3. Replacement of 20 nos. standard LT motors with high energy efficient IE-2 classmotors-5.9 Lakhs.

4. Replacement of 24 nos. HPSV high bay lights with LED lamps- Rs 1.2 Lakhs.

5. Procurement & laying of graphitized Cathode Blocks in Pots-Rs 3938 Lakhs.


1. Installation of variable frequency drive (VFD) at unit 6 cooling tower fans- Rs 39Lakhs.

2. Replacement of FRP blade in place of GRP blade in unit -9 & 10 cooling towerfans- Rs 42 Lakhs.

3. Installation of energy efficient lighting system like LED light fitting LED tubelight- Rs. 27 Lakhs.

B. Technology Absorption Adaptation & Innovation:

Sl. No Technology Benefits thereof
1 150m3 per batch Effluent Water Treatment Plant with Emrion Nano Technology of Eesavyasa This breakthrough technology based on EMRION process has major advantages over the conventional process such as;
Technology Pvt. Ltd. 1st of its kind in the world was commissioned at Smelter Plant and is in operation. – 95% recovery of water without any hazardous waste.
– Zero use of chemicals and
– Zero liquid discharge (ZLD) plant.
– Bring down fluoride content to below 2 ppm from as high as 30 ppm exceeding the Environmental norms.
2 PTMs of PL-1234-Additional interlocks using weigh scale under load/over load protection introduced Reduction in mal-functioning and rope slackness of hoist in PTM.
3 Up gradation of Obsolete PLC Processor system to Control logic based processor system for Overhead Conveyor application (PLC 12) in Rodding Shop-1. Reduction in breakdown time.
4 Up gradation of Obsolete PLC Processor system to Control logic based processor system for proportioning application (PLC B) in GAP-1. Reduction in breakdown time.


Technology Imported/Upgraded Year of import/ upgraded Has technology been fully absorbed If not fully absorbed areas where this has not taken place reasons therefore and future plans of action.
Fume treatment Center in Anode Baking Furnace-2 for meeting the environmental norms. 2012-13 YES -
Successful operation of potlines with slotted anodes for reduction of DC Energy consumption. 2012-13 NO Complete absorption of technology will take place after commissioning of 2nd slot cutting machine which is being procured.
RTDAS (Real Time Data acquisition system) for CH 2013-14 YES -
(B) stacks FTP 7 & 8 stacks for continuous uploading data to the server of OSPCB through GPRS service.
Online ambient air quality monitoring station at Township commissioned for continuous uploading data to the server of OSPCB through GPRS service. 2013-14 YES -
New bath by pass system in bath handling system of rodding shop 2 of carbon plant. 2013-14 YES -
Aluminium Billet casting facility equipped to cast 8" 9" and 10" Billets. 2013-14 YES -
Anode stub hole depth increased for reduction of DC 2013-14 YES -
Energy consumption.
Introduction of automatic bath breaking m/c in Rodding Shop-1. 2013-14 YES -
Six numbers online particulate matter (PM) analysers installed & commissioned in FTPs of Potlines. 2014-15 YES -
Three numbers online ambient air quality monitoring stations commissioned inside Smelter plant. 2014-15 YES -
Online effluent monitoring station commissioned at the outlet of effluent treatment plant. 2014-15 YES -
Automated Alumina mixing system for crushed bath plant at rodding shop-1. 2014-15 YES -
C.P.Coke blending system installed in GAP1. 2014-15 YES -
RTDAS (Real Time Data acquisition system) for FTP 1-6 stacks Bake-oven Stacks 3 Nos. new ambient air monitoring stations and effluent monitoring station for continuous uploading of monitoring data to the server of OSPCB through GPRS service 2015-16 YES -
Installation of Fume Treatment Center in Anode 2015-16 YES -
Baking Furnace -1.
Commissioning of Fume Treatment Center in Anode 2016-17 YES -
Baking Furnace -1.
Centralized SCADA system commissioned at FTP-5 to monitor the status of 10-different plants (FTP 5 to 8 Silo 5 to 8 HDPS-1&2). 2016-17 YES -
The SCADA & HMI system of Billet casting Machine upgraded from industrial key pad based workstation to latest touch screen based workstation. 2016-17 YES -
New product CH-90 grade Billet (High Speed 2016-17 YES -
Extrusion Billet) developed and commercialized.
Smelter effluent water treatment plant based on EMRION Nano technology was set up. 2016-17 YES -
CP Coke blending system installed in GAP-II. 2016-17 YES -


Expenditure on R&D (Rs. in lakhs)
Nature 2016-17 2015-16
Capital 2772 150
Revenue 1980 1425
Total 4752 1575
R&D Expenditure as % of gross turnover 0.60 0.22

C. The foreign exchange earnings for the year 2016-17 is Rs.3277.32 crores as againstRs. 3008.18 crores in 2015-16. The foreign exchange outgo for the year under report wasRs.288.80 crores as against Rs. 205.41 crores in the previous year.