Nalco To Kick Off Massive Expansion This Fiscal

Kolkata, Nov 6: | Updated: Nov 7 2003, 05:30am hrs
National Aluminium Co (Nalco) is likely to start implementing its Rs 4,100 crore expansion plan before the end of the current fiscal, although it will not inject any fresh equity capital.

"Our equity is already high at Rs 640 crore and we have no plan to infuse new equity," Nalcos chairman and managing director C Venkataramana told FE. At present, the debt to equity ratio of the company is as low as 0.3:1.

When the government was considering disinvestment of its stake in this public sector aluminium major, it was proposed that a part of the government equity be sold to the public and for that a public issue would be floated by November 2003.

"Since the government has decided not to disinvest, we do not need to infuse any equity, not even for implementing our proposed expansion," Mr Venkataramana said. Nalco has already placed its expansion plan to the Union government for consideration.