Nalco attains zero debt status

The National Aluminium Company Ltd (Nalco), India's leading producer and exporter of aluminium, today became a zero debt company following repayment of the third and final instalment on 14.5 per cent non-convertible redeemable secured debentures amounting to Rs 214.39 crore.

At the commencement of 2004-05, Nalco had loans amounting to Rs 654.39 crore but the company was able to repay the entire loan amount with prudent financial management coupled with increased production and realisation, a Nalco release here said.

Nalco had brought down its paid up capital from Rs 1,288.62 crore to Rs 641.31 crore and issued 14.5 per cent debentures amounting to Rs 641.31 crore which had been repaid in instalments in 2003, 2004 and 2005, it said.

In fact, Nalco had also earlier achieved the zero-debt status in September 1998 when the company had successfully discharged the last foreign currency loan of ¥20 billion plus interest (Rs 639.50 crore).

The company had borrowed a total of $980 million from a consortium of international banks to finance its initial project costs.

Meanwhile, the company had started work on the second phase expansion at an investment of Rs 4,091 crore.

The company hoped to meet the fund requirement through internal resources and partly through external borrowings, the release said.