The Hindu Business Line : Nalco to pay 40 pc dividend

WITH the successful completion of the first phase expansion, National Aluminium Company (Nalco) is now ready to take up its second phase expansion at a cost of Rs 4,091 crore, according to the company's Chairman-cum-Managing Director (In-charge), Mr G. Upadhyaya.

The Public Investment Board has already recommended the expansion programme and the environment clearance has also been obtained. The expansion work will start soon after the approval of the Cabinet Committee on Economic Affairs, Mr Upadhyaya said.

``We are expecting the Cabinet Committee's approval shortly,'' Mr Upadhyaya said, addressing a press conference after the company's 23rd Annual General Meeting held here on Tuesday. The projected outlay will be met from the company's internal resources and borrowings, without any budgetary support from the Government, he said.

With the implementation of the second phase of expansion, the company plans to increase its bauxite production to 63 lakh tonnes, alumina refinery production to 24 lakh tonnes and also achieve substantial increase in the productivity of its smelter and power generation plants, Mr Upadhyaya said.

Besides, the company has decided to take up a few backward integration projects for sourcing its raw material requirements and for insulating itself from price escalation.

The company has been recently granted a coal mine block for captive coal mining, which will reduce its dependence on procurement of coal.

Mr Upadhyaya said that the company was fully geared up to meet the growing competition at all levels by producing quality products and meeting the demands of its customers within the country and outside.

Addressing the AGM, Mr Upadhyaya announced that the company's board of directors had recommended a dividend of 40 per cent for 2003-04, amounting to Rs 257.72 crore.

During 2003-04, the company posted a profit of Rs 737.37 crore, up 41 per cent from Rs 520.92 crore the previous year. It recorded a sales turnover of Rs 3,338.87 crore (Rs 2,739.76 crore).

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