Nalco sets INR1,021 cr Capex target for FY17

<p>Public sector aluminium firm National Aluminium Company (Nalco) has lined up a capital expenditure (Capex) of INR1,021 crore for 2016-17. <br /><br />The Capex would be used for projects like development of Utkal D&amp;E coal blocks, wind power projects of 50 Mw each in Maharashtra and Rajasthan, addition of fifth stream in the existing alumina refinery at Damanjodi, Koraput, a 20 Mw solar power project in Madhya Pradesh and other expansion and modernization activities, said Nalco's chairman and managing director (CMD) T K Chand during his address to shareholders at the company's annual general meeting.<br /><br />Nalco, meanwhile, has completed buyback of shares that was approved by the shareholders in July this year. Post buyback, the paid-up share capital of the company stands reduced to INR966.46 crore from INR1,288.62 crore. Also, the Government of India shareholding in Nalco has come down from 80.93 per cent to 74.58 per cent of the total paid-up capital. Under its buyback offer, Nalco bought around 640 million shares valued at INR2,835 crore.<br /><br />Addressing shareholders, Chand said: "The global aluminium production grew by 6.1 per cent year-on-year (y-o-y) basis from 54.21 million tonne in 2014 to 57.52 million tonne in 2015, while global aluminium consumption grew only by about 4 per cent y-o-y. China continued to be the world&rsquo;s largest producer and consumer of aluminium, constituting 54 per cent of global output and 52 per cent of global consumption."<br /><br />{googleAdsense}<br /><br />"Global aluminium prices have displayed considerable volatility throughout 2015-16, with LME cash prices fluctuating between a high of&nbsp; $1,919 per tonne in May 2015 to a low of $1,424 per tonne in November 2015. The average LME cash settlement price for 2015-16 was $1,592 per tonne, registering a fall of almost 16 per cent from 2014-15 average of $1,889 per tonne", he added.<br /><br />Commenting on the domestic scenario, he said: "Total domestic production of aluminium metal during 2015-16 grew by 19.1 per cent y-o-y, from 2.05 million tonne (mt) in 2014-15 to 2.44 mt in 2015-16, on account of domestic aluminium producers ramping up output at new smelting assets. Domestic consumption of primary metal also showed a sharp jump of 25.4 per cent y-o-y, from about 1.58 mt in 2014-15 to 1.98 mt in 2015-16. This has been largely on account of increased offtake by the electrical, transportation and construction sectors."<br /><br />Aluminium exports by Indian primary producers also registered a 15 per cent growth y-o-y, from 0.77 mt in 2014-15 to 0.88 mt in 2015-16. With the Government of India's increased thrust on infrastructure, aluminium offtake from electrical, building and construction sectors is expected to pick up considerably.</p>