Nalco's Capex Shortfall Raises Concerns

A parliamentary panel has criticized Nalco for achieving less than 50% of its capex target of Rs 2,000 crore for 2024-25 by January 2025. Despite past successes, the panel seeks clarity on the slow expenditure. Nalco manages its outlay using internal resources, with the government holding 51.28% equity.

A parliamentary panel has expressed concern over Nalco's underachievement of its capital expenditure targets. As of January 2025, Nalco spent less than half of its Rs 2,000 crore target for the 2024-25 fiscal year.

Despite the slow start, the 'Navratna' company, founded in 1981 and with its headquarters in Bhubaneswar, has consistently met its capex goals in previous years. In some years, it narrowly missed full achievement, such as in FY 21-22 when it reached 99.2% of its target.

The Standing Committee on Coal, Mines, and Steel insists on understanding the reasons behind the sluggish capex pace, noting Nalco's reliance on internal resources rather than government budgetary support. The Centre owns 51.28% of Nalco's equity, underscoring its significant stake in the company's operations.

(With inputs from agencies.)