Nalco reports 24 pc jump in bauxite mining during H1 of FY17

PTI

Despite a world-wide sluggish market in metal sector, Navratna PSU Nalco has registered an impressive performance in the first half of 2016-17 fiscal.

While bauxite mining was up by 23.6 percent at 35.08 lakh tonnes as compared to the corresponding six months of the previous financial year, the alumina hydrate production rose by 5.1 percent to 9.68 lakh tonnes compared to the corresponding period last year, an official release said.

During the period, the company produced 1.88 lakh tonnes of aluminium, which is 4.2 percent higher than the production in the same period of FY 2015-16.

NALCO's net power generation has also gone up by 3.6 percent to 2,945 million units as compared to the corresponding period of the previous fiscal.

NALCO also generated 130 million units of wind power registering an increase of 14.7 percent as compared to the corresponding period last fiscal, it said.

In terms of sales too, the company registered an excellent performance despite the sluggishness prevailing in the international market.

NALCO's alumina hydrate sales during the first half was up by 8.5 percent at 5.81 lakh tonnes as compared to the first six months of 2015-16. During the period, the company sold 1.81 lakh tonnes of aluminium, which is 5.8 percent higher as against the same period of the previous fiscal.

Despite sluggish market, the company made a PAT (profit after tax) of Rs.731 crore in 2015-16 and Rs.135 crore in the first quarter of current fiscal, when 70 percent aluminium companies world over have reported loss and also reduced production as the industry was reeling under heavy pressure.

Union Minister of Power, Coal, New and Renewable Energy and Mines Piyush Goyal has asked NALCO to prepare a prospective future plan to raise its aluminium smelting capacity to 20 lakh tonnes per annum from the present 4.6 lakh tonnes, it said.

The allotment of Pottangi Bauxite Mines and Utkal D&E Coal Blocks in Odisha, besides recent bridge linkage from Coal India, would lead the company towards realization of this vision, according to the company.

Moreover, NALCO has set a capex target of Rs.1,021 crore for 2016-17, which includes projects like development of Utkal D&E Coal Blocks, wind power projects of 50 MW each in Maharashtra and Rajasthan, addition of 5th stream in the existing Alumina Refinery at Damanjodi in Odisha, Aluminium Park at Angul in Odisha, a 20 MW Solar Power Project in Madhya Pradesh, other expansion and modernization activities.

With NALCO's all-round growth paving way for better prospects, the company is all set to emerge as a global player and will have a competitive edge when the market regains buoyancy, it said.