While addressing media after
the Annual General Meeting, B.L. Bagra, CMD, NALCO said
highlighting the growth plans of the company, “NALCO has
adopted a new Corporate Plan, named Vision 2020. Pursuing the Vision
Statement of becoming a ‘Reputed Global company in the Metals and Energy
sectors’, the company has initiated actions, encompassing the whole gamut of
business activities, for achieving the objectives set out in the Corporate
Plan.”
Greenfield Projects
According to Bagra, NALCO has taken up different Greenfield projects
in the country including a Rs.4,500 crore alumina refinery in
Gujarat with one million tonne capacity for which the Detailed
Project Report (DPR) is under work. The company is also planning a
Rs.16,000 crore new smelter in Western Odisha which is being pursued
with the State Government. The company also has plans to set up a
1.4 million tonnes per annum alumina refinery in Andhra Pradesh,
based on bauxite reserves there. To start with, some CSR works have
been undertaken in the vicinity.
Energy Sector
In
energy sector, the company has formed a Joint Venture with Nuclear
Power Corporation of India Ltd. to set up nuclear power plants in
India. Both the partners have selected Kakrapar Units 3 and 4 of 700
MW each in Gujarat as their first JV project with an estimated
project cost of Rs.11,500 crore. The construction work has already
started and the project is scheduled to be commissioned by December,
2015.
Moreover, with a view to harness the unconventional energy source,
NALCO is setting up a Rs.274 crore Wind Power Project in Andhra
Pradesh with a capacity of 50.4 MW, which is in the final stage of
commissioning. Plans are afoot for a second Wind Power Project of
equal capacity. A third plant has been planned in the company’s own
worked out mined area at Panchpatmali in Koraput district of Odisha.
Also, a Solar Power Plant of 15MW is on the cards.
Brownfield Projects
With
the commissioning of 4th Stream of Alumina Refinery
during the year, the Rs.4402 crore 2nd Phase Expansion
Project of the company stands completed. With the completion of this
expansion programme, the annual capacity of the Bauxite Mines has
increased to 63 lakh tonnes per annum, while that of the Alumina
Refinery has gone up to 21 lakh tonnes per annum. Similarly, the
capacity of the Aluminium Smelter has gone up to 4.6 lakh tonnes per
annum and that of the Captive Power Plant to 1200 MW. The company
has initiated activities for 3rd phase Brownfield
expansion at the existing facilities in Odisha at an estimated
investment of Rs.7,500 crore.
NALCO FOUNDATION
Besides periphery development works being undertaken through
Rehabilitation and Periphery Development Advisory Committees (RPDACs)
set up by the State Government, the company has set up a Foundation
in 2010 for its CSR activities by allocating an additional one
percent of its net profit every year, thereby doubling the CSR
budget to 2% of the net profit. The Foundation has adopted
project-based approach, ensuring community participation,
accountability, sustainability and measurable results. Nalco
Foundation is focused on development of villages located within 15
kms radius of NALCO’s Mines and Plants in Damanjodi and Angul, and
also proposed mining areas such as Utkal-E Coal Block (Chhendipada
in Angul), Pottangi (in Koraput) and Gudem & KR Konda (in
Visakhapatnam and East Godavari districts of Andhra Pradesh).
Low on Profit Sharing and CSR allocation
While on highways of growth, NALCO is yet to allot
substantial part of its profit for CSR and peripheral development
activities, matching the provisions drafted in the MMDR Bill, 2011.
While the draft policy says that all mines will be asked to put in
place corporate social responsibility schemes, setting aside 3% of
their net profit of the previous year, NALCO has yet achieved to
allocate only 2% in this regard. It’s to be noted that NALCO is
closely involved in mining activities for its bauxite and alumina
productions.
The
leading PSU is also to open how much of its profit is being shared
for periphery and community development. As per 43 (2) (a) of the
Draft Mines and
Minerals (Development and Regulation) Bill, 2011, approved by
Cabinet on 30th September 2011, in case of major minerals (except
coal and lignite) Payment of compensation to owner of surface,
usufruct and traditional rights, damage, etc. an amount equivalent
to the royalty paid during the financial year has to be paid by the
holder of a mining lease to the District Mineral Foundation.
NALCO should work on proper sharing of
profit and more allocation for CSR activities as there have been
reports of unfortunate and dangerous trends like
prostitution for a good living coming up in
Damanjodi, the place where the company has its mining
site and bauxite plant.
