The State-owned aluminium firm Nalco plans to invest Rs 2,343 crore next fiscal, a 76 per cent rise in capital expenditure over FY’12, to increase capacity, according to the 2012-13 Budget documents.
A disinvestment candidate for the Government’s Rs 30,000-crore mop-up target, Nalco spent Rs 1,333 crore this fiscal.
The Budgeted outlay for the company in 2011-12 was Rs 1,057 crore, but it was subsequently raised to Rs 1,333 crore, the documents show.
The Odisha-based firm plans to invest Rs 57,903 crore by 2020, mainly for setting up two aluminium smelters, a report of the Parliamentary Standing Committee on Coal and Steel had stated earlier.
The proposed outlay includes Rs 16,500 crore for setting up a 5 million tonne (MT) smelter in Indonesia, with 1,250 MW power plant. Another smelter of the same size would be built in Western Odisha in two phases, with a 1,260 MW power plant at an estimated investment of Rs 16,345 crore.
Besides, Nalco plans to construct a new alumina refinery of 1.4 MT in Andhra Pradesh and a 1,000-MW power project as independent power producer. Both the projects would require an investment of Rs 10,600 crore.
The Government has identified Nalco as a potential disinvestment target for the next fiscal. During 2012-13, it plans to generate Rs 30,000 crore revenue through sale of shares in public sector units.
Nalco is a listed company but is yet to meet the 10 per cent free float target as required by the capital market regulator SEBI.