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NALCO to increase capital expenditure by 76 percent

20 Mar 2012 Evaluate

In a bid to increase capacity, state-owned aluminium firm National Aluminium Company (NALCO) is planning to increase its capital expenditure by 76 percent to Rs 2,343 crore in next fiscal over FY12. A disinvestment candidate for the government’s Rs 30,000 crore mop up target, the company will spent Rs 1,333 crore this fiscal.

The company is also planning to invest Rs 57,903 crore by 2020 mainly for setting up two aluminium smelters. The proposed outlay includes Rs 16,500 crore for setting up a 5 million tonnes (MT) smelter in Indonesia, with 1,250 MW power plant. Another smelter of the same size would be built in Western Odisha in two phases, with 1,260 MW power plant at an estimated investment of Rs 16,345 crore.

Further, the Odisha-based firm plans to construct a new alumina refinery of 1.4 MT in Andhra Pradesh and 1,000-MW power project as independent power producer. Both the projects would require an investment of Rs 10,600 crore.

The company posted a fall of 79.99% in its net profit of Rs 51.22 crore for the quarter ended December 31, 2011 as compared to Rs 255.95 crore for the same quarter in the previous year. However, total income increased by 3.07% from Rs 1532.51 crore for Q3FY11 to Rs 1579.51 crore in the quarter under review.

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