Bhubaneswar: Ruling out any privatisation plan, the National Aluminium Company Limited (NALCO) here on Friday announced record half-yearly results, doubling of smelter capacity, a new green energy vertical and a soon-to-be operational Gallium pilot plant.
Addressing the Annual Press Meet in Bhubaneswar, the company’s chairman-cum-managing director (CMD) Brijendra Pratap Singh said NALCO will remain a Navratna CPSE under the Ministry of Mines and lead India’s aluminium self-reliance.
“There is no question of privatising NALCO. It is performing at its best. Rather the government’s mandate is to expand,” the CMD said, replying to a query. “We have given the government dividends worth Rs 900 crore and Rs 1000 crore in the last two fiscals and we plan to enhance our aluminium production,” he added.
He also said NALCO is open to selling alumina to Vedanta Aluminium if the latter participates in a tender and matches NALCO’s price. “The government of India wants us to reduce export of alumina. We are open to selling it to Vedanta, which imports alumina, if it participates in a tender and matches our prices,” he added.
The CMD unveiled the central PSU’s best-ever half-yearly results since inception:
* Total Income: Rs 11,143 crore, up 33% YoY – All-time high
* EBITDA: Rs 5,539 crore, up 50% – All-time high
* PBT: Rs 5,160 crore, up 55% – Highest-ever
* PAT: Rs 3,837 crore, up 54% – Highest-ever
* Q2 PAT: Rs 1,835 crore, up 28% over Rs 1,433 crore last year
Operationally, the company recorded highest-ever H1 Aluminium Cast Metal production of 2.35 lakh tonnes and highest-ever domestic sale of Alumina and Aluminium Metal.
An interim dividend of Rs 4.50 per equity share (90%) involving a payout of Rs 826.48 crore was announced.
The company’s top management further reiterated plans to set up a 0.5 MTPA smelter at Anugola by December, 2030.
Singh said NALCO would invest Rs 30,000 crore in the brownfield smelter expansion project at Anugola. “Our aluminium production capacity will rise from 0.46 MTPA to nearly 1.0 MTPA. We target to commission it by December 2030,” he informed. He said the Odisha government has agreed to transfer 300 acres of land by February 2027. The detailed project report (DPR) should also be ready around the same time, he noted.
The CMD did not reveal much on the company’s plans to set up a 0.5 MTPA smelter facility at Srikakulam in neighbouring Andhra Pradesh but dropped hints, saying: “Looking beyond current projects, the company is exploring opportunities for establishing additional greenfield aluminium projects in alignment with the national objectives of value addition, industrial self-reliance and manufacturing growth.”
He also emphasised that the company wants to reduce alumina exports and convert it into aluminium by augmenting its capacities. The company’s alumina production is expected to jump from 2.1 MTPA to 3.1 MTPA by 2028 FY.
Singh dismissed talk of the company shifting its proposed smelter facility at Angul to Andhra Pradesh and said the company is committed to it. “We have already signed a licensing agreement with Emirates Global Aluminium (EGA) for smelting technology. For the power project we will have a 50:50 joint venture with NLC India Ltd for a 1,080 MW captive thermal power plant,” he disclosed.
The Navratna PSU further announced to start NALCO Green, a new vertical to increase green power use and reduce its carbon footprint. Singh said they plan to Integrate 200-250 MW of renewable energy into the Anugola project ecosystem; drive energy transition across mines, refinery, smelter and captive power; and anchor NALCO’s ESG and decarbonisation roadmap.
Responding to a question, the CMD said NALCO’s foray into strategic mineral Gallium is set to take off. A pilot plant at Damanjodi, Koraput, is expected to start operations this month, he stated. Gallium, extracted from alumina refining, is critical for semiconductors and electronics.