Aluminium producer Nalco’ capital expenditure target has been pruned by 32 percent to Rs 1,181 crore for 2014-15 due to repeated failure of the PSU in meeting targeted expenditure in previous years.
Moreover, National Aluminium Company’s (Nalco) capital expenditure target has been cut down by a whopping 69 percent to Rs 542.50 crore for the present fiscal from originally estimated Rs 1,737 crore, the Interim Budget papers for 2014-15 showed.
“Plan outlay is mainly meant for greenfield project and expansion plans, captive coal mine Utkal E, second phase expansion and additions/modification/replacement,” it said.
Nalco, the largest domestic aluminium producer, has not been able to meet its capital expenditure targets since 2008-09, an analysis of the Budget and other official papers for last six years showed.
Recently, a Parliamentary Standing Committee on Coal and Steel had also questioned the company and its parent, Ministry of Mines, over the aluminium producer’s “miserable” failure in meeting the targets.
Official sources cited host of reasons for Nalco failing to meet the targets, including lack of statutory clearances for company’s foray into the nuclear power sector.