Bhubaneswar, September 22(Odisha.in) In the 26th Annual General Meeting held here Friday, the shareholders of National Aluminium Company Ltd. (NALCO) approved the Annual Accounts for 2006-07 with the highest-ever sales turnover of Rs.6515 crore, the highest-ever export earning of Rs.2585 crore and the highest-ever net profit of Rs.2381 crore.
They also approved the highest-ever dividend payout of 75% amounting to Rs.483.23 crore (including 35% 1st interim dividend paid during February, 2007 and 15% 2nd interim dividend paid in March, 2007), on the paid-up equity share capital of Rs.644.31 crore, as compared to 50% dividend amounting to Rs.322.16 crore paid for the previous year.
Addressing the AGM, Shri C.R. Pradhan, Chairman, said that NALCO could achieve the highest sale of 3,56,616 MT of metal during the year 2006-07, surpassing the previous highest of 3,53,841 MT in 2005-06.
Similarly, the sale of 2,63,494 MT of metal in the domestic market surpassed the previous highest of 2,58,094 MT achieved in 2005-06.
The system of entering into annual MoU with domestic customers for sale of aluminium metal, by providing benefits & incentives, has helped NALCO achieve a growth of approximately 2.1% of sales in domestic market over the previous financial year.
Besides, for the third consecutive year, NALCO continued to remain a ‘Zero Debt’ company. The company utilized its internal cash generation to meet its working capital and capex requirements and it had not utilized any borrowing facility during the year.
“So far, we have been funding the expansion activities through internal accruals. However, to meet foreign cost component of ongoing project, we are in process of tapping the external borrowing to raise 150 million Euro. Quite a few banks and merchant bankers have responded to the bids invited by us,” Shri Pradhan clarified.
Talking about the growth plans of the company, Shri Pradhan said that NALCO is currently implementing the 2nd phase expansion with an investment of Rs.5003 crore (at March, 2007 level).
These projects are scheduled to be completed by the end of 2008, which will raise the Bauxite Mines capacity to 63 lakh tonnes, Alumina Refinery capacity to 21 lakh tonnes, Aluminium Smelter capacity to 4.60 lakh tonnes and Captive Power Plant capacity to 1200 MW.
Besides brownfield expansion, NALCO is examining some proposals for setting up joint venture project overseas for Smelter, to add value to surplus alumina to the tune of 12 lakh tonnes to be available once its 2nd phase expansion gets completed.
The company is also exploring the possibility of setting up backward integration projects to ensure steady supply of some of the raw materials and for insulating the company from price uncertainties. These proposals are being actively pursued and the final views shall be taken in the current fiscal, Shri Pradhan said.
Informing about the 70 million tonne ‘Utkal-E’ coal block, allotted by the Government of India to NALCO for its new units at Captive Power Plant, Shri Pradhan said that the Mine Plan has already been approved by the Ministry of Coal and Detailed Project Report has been prepared.
Land acquisition activities have started. Environmental clearances and forest diversion activities are in progress. Mining operations are scheduled to commence by the end of 2008.
“Besides, NALCO is also pursuing with the Government for new bauxite mining leases at Gandhamardan, allotment of Pottangi bauxite deposit in Orissa, as well as Jerrela bauxite deposit in Andhra Pradesh”, Shri Pradhan added.
Addressing a press meet in the evening, Shri Pradhan further said that NALCO is known not only for its productivity and profitability, but also for its firm commitment to a socially sensitive model of development.
The company has virtually set a benchmark in Corporate Social Responsibility in Orissa. It spends 1% of its net profit every year on social sector activities, like drinking water, education, transport, communication, health and sanitation, public welfare, culture and sports.
International sportspersons like Anuradha Biswal, Shraddhanjali Samantray, Debasis Mohanty and Shiv Sundar Das are all NALCO employees. NALCO has also contributed to national-level sports bodies – for example, during Afro-Asian Games & Athens Olympics.
These apart, during natural calamities, NALCO has been donating to Chief Minister’s Relief Fund and Prime Minister’s National Relief Fund – say during Kargil War, Tsunami, Gujarat Earthquake, J&K Earthquake and Super Cyclone in Orissa. Soon after Super Cyclone in Orissa, NALCO created 197 primary school-cum-cyclone shelters in the coastal districts. Besides, illuminating Lord Lingaraj Temple, the company has created Mahatma Gandhi Park and Biju Patnaik Park at Bhubaneswar and Gandhi Ghat Park at Puri. NALCO has offered Rs. 2 crore for the renovation of Anand Bazar in the premises of Lord Jagannath Temple.