NALCO hit hard by rising Re; to raise Rs 900 crore
Following a rise in the exchange value of rupee, NALCO has been earning reduced foreign exchange from exports and losing around Rs 120 crore every month.
By PTI |
BHUBANESWAR: Public sector aluminium giant NALCO on Saturday said the company is losing around Rs 120 crore per month due to rapid appreciation of rupee, and in the process of tapping external borrowings to raise 150 million euro (around Rs 900 crore).
Speaking to reporters, NALCO chairman C R Pradhan said that the company has shortlisted the State Bank of India and Axis Bank.
Following a rise in the exchange value of rupee, NALCO has been earning reduced foreign exchange from exports since April this year and losing around Rs 120 crore every month, Pradhan said.
The company is working out strategies to tackle the problem, he said, adding that efforts were on to strike a balance between supply in the domestic and external market in order to neutralise the damage caused by a robust rupee.
Announcing plans to resort to external borrowings for expansion programmes, Pradhan said NALCO is implementing its second phase expansion plan with an investment of Rs 5,003 crore for which equipment worth Rs 1,500 crore would be imported from Europe.
"To meet foreign cost component of ongoing project, NALCO is in the process of tapping external borrowings to raise 150 million euro (around Rs 900 crore). Some banks and merchant bankers have responded to our bids," he said, adding State Bank Of India and Axis Bank have been shortlisted.
NALCO, which achieved record sales turnover of Rs 6,515 crore and highest ever net profit of Rs 2,381 crore last fiscal would be able to raise bauxite mines capacity to 63 lakh tonnes, alumina refinery capacity to 21 lakh tonnes, aluminium smelter capacity to 4.60 lakh tonnes after its second phase expansion.
Speaking to reporters, NALCO chairman C R Pradhan said that the company has shortlisted the State Bank of India and Axis Bank.
Following a rise in the exchange value of rupee, NALCO has been earning reduced foreign exchange from exports since April this year and losing around Rs 120 crore every month, Pradhan said.
The company is working out strategies to tackle the problem, he said, adding that efforts were on to strike a balance between supply in the domestic and external market in order to neutralise the damage caused by a robust rupee.
Announcing plans to resort to external borrowings for expansion programmes, Pradhan said NALCO is implementing its second phase expansion plan with an investment of Rs 5,003 crore for which equipment worth Rs 1,500 crore would be imported from Europe.
"To meet foreign cost component of ongoing project, NALCO is in the process of tapping external borrowings to raise 150 million euro (around Rs 900 crore). Some banks and merchant bankers have responded to our bids," he said, adding State Bank Of India and Axis Bank have been shortlisted.
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NALCO, which achieved record sales turnover of Rs 6,515 crore and highest ever net profit of Rs 2,381 crore last fiscal would be able to raise bauxite mines capacity to 63 lakh tonnes, alumina refinery capacity to 21 lakh tonnes, aluminium smelter capacity to 4.60 lakh tonnes after its second phase expansion.
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