NALCO, mines ministry ink pact to set higher targets for FY18

State-run NALCO has signed an MoU with the Ministry of Mines for setting higher targets in production, turnover and capital expenditure for the current financial year.
The MoU was signed between Arun Kumar, Secretary, Ministry of Mines and Tapan Kumar Chand, CMD, Nalco, here today, the company said in a statement.
"National Aluminium Company Limited (Nalco) has signed an MoU with the Ministry of Mines, setting higher targets in production, productivity, turnover and capex for the FY 2017- 18," the navratna said.
Secretary Mines has acknowledged the management in NALCO for the excellent performance of the company in FY 2016-17 and its robust business plan for 2017-18 fiscal, it said.

The MoU was formulated as per the new Department of Public Enterprise guidelines and finalised after discussions with both inter-ministerial committee as well as the mines ministry.
As per the MoU, the target for revenue from operations has been fixed at Rs 8,100 crore (net of excise) which is Rs 700 cr more than previous year. 100 per cent targets have been set for production of both bauxite and alumina i.E. 6.825 million tonne and 2.1 million tonne, respectively, it said.

Aluminium production target is set at 4.4 lakh tonnes for this fiscal. The targets are an all time-high for the company and is expected to push the profitability of NALCO despite increase in expenses on account of enhanced electricity duty, RPO obligations, employee wage revision and power and fuel oil.

The company has a capex target of Rs 1,158 crore against Rs 873 crore achieved in 2016-17. The expenses are to be incurred in several new and ongoing projects like the one MT refinery Utkal-D&E coal blocks, solar and wind power projects, modernisation and upgradation of plant and equipments.
It has also set a new HR succession plan, HR Audit, online ACR and training in reputed business institutes for its employees. The plan will enable the company to synchronise its workforce and skill set in line with the new business plan, which is already in an advanced stage finalisation.
Subash Chandra, Joint Secretary and other senior officials of the ministry and Nalco were present on the occasion, the statement said.