Nalco to raise over $250 mn overseas
State-run aluminium producer Nalco plans to raise over $250-million through the external commercial borrowing (ECB) route to finance its expansion programme, a top company official said.
By PTI |
MUMBAI: State-run aluminium producer Nalco plans to raise over $250-million through the external commercial borrowing (ECB) route to finance its expansion programme, a top company official said.
The company is undertaking a major expansion including ramping up of its alumina capacity at an investment of over $1-billion (Rs 5,040-crore), scheduled to be completed by end of 2008.
"The total investment is estimated at Rs 5,040 crore of which we will be raising a part from overseas markets. The estimated Indian component of Rs 3,000 crore is planned to be funded wholly by internal accruals," Nalco's Director, Finance, B L Bagra told PTI.
Internal resources are readily available for the purpose, he added.
The project involves expansion of capacity of bauxite mine, alumina refinery, captive power plant and aluminium smelter by about 33 per cent, he said.
Under the expansion, the capacity of the bauxite mine in Koraput, Orissa, would be increased from 48 lakh MT per annum to 63 lakh MT per annum, while the alumina capacity would be enhanced from 15.75-lakh MT to 21-lakh MT.
The capacity of its captive power plant at Angul in Orissa will also be ramped up to 1200 MW from its present 960 MW.
Bagra said that the company also plans to enhance its aluminium smelting capacity from 345,000 MT to 460,000 MT per annum.
On growth targets, Bagra said "target for the year 2007-08 does not cater for growth in physical terms whereas the financial results are estimated to be affected by LME prices to an extent."
Bagra said that the company was targeting a 30 per cent growth in the medium-term after the completion of the expansion project by the end of 2008.
The Nalco official said there was no plan to raise funds from the domestic market and that "the proposed borrowing is meant from abroad only."
"The actual form of ECB would depend upon expert advice of the bankers for which an expression of interest has been invited," he said, adding that the bankers would be appointed through a competitive bidding process.
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