State run aluminium major National Aluminium Company Ltd (Nalco) has signed a memorandum of understanding (MoU) with the Union ministry of mines, setting higher targets in production, productivity, turnover and Capex for 2017-18.
As per the pact, the target for revenue from operations has been fixed at INR 8100 crore (net of excise) which is INR 700 crore more than the previous year.
Nalco has also set 100 per cent targets for production of both bauxite and alumina i.e 6.825 MnT and 2.1 MnT respectively.
Aluminium production target of Nalco is set at 0.44 MnT for 2017-18.
The MoU was signed between Arun Kumar, secretary, Ministry of Mines and Tapan Kumar Chand, Nalco’s chairman & managing director.
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 (renewable purchase obligation), employee wage revision and power & fuel oil, the company said in a statement.
The company has a Capex target of INR 1158 crore against INR 873 crore achieved in 2016-17. The expenses will be incurred in several new and ongoing projects like the one million tonne refinery, Utkal-D&E coal blocks, solar and wind power projects, modernization and up-gradation of plant & equipments.
In another strategic move on the human resource (HR) front, the company has 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 synchronize its workforce and skill set in line with the new business plan which is already in an advanced stage finalization, Nalco said.
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