Saturday, December 28, 2013

Excellent tag for NALCO among PSUs for FY 2012-13

NATIONAL Aluminium Company Limited (NALCO), a Navratna PSU under the ministry of mines has got ‘Excellent’ MoU (Memorandum of Understanding) score of 1.5 from the department of public enterprises (DPE) for its outstanding performance in 2012-13, said a press release. NALCO had last achieved the ‘Excellent’ MoU score way back in FY 2006-07.
The release further said that during the FY 2012-13, the aluminium company has also been rated as...
‘Excellent’ with a score of 97.5 for compliance with guidelines on corporate governance for CPSEs. During the financial year 2012-13 NALCO has reported a highest ever net sales of Rs 7247 crore against a target of Rs 7073 crore. This represents an increase of 2.46 percent against the MoU target. NALCO reported a net profit of Rs 593 crore with metal sale of 4,03,102 tonnes and alumina sale of 9,84,722 tonnes in the financial year 2012-13.
NALCO also produced highest-ever bauxite of 54.19 lakh tonnes and highest-ever alumina of 18.02 lakh tonnes in 2012-13. During the period, the company also generated 6076 units of power from its Captive Power Plant.
NALCO's excellent rating comes following its remarkable achievements and activities in the realm of corporate social responsibility (CSR), sustainable development and research & development (R&D). As part of its MoU (signed with the Union mines ministry) on harnessing renewable energy sources, NALCO has diversified into wind power generation with the commissioning of 50.4 MW plant at Gandikota in Andhra Pradesh. The project installed at a cost of Rs 274 crore was synchronized in December 2012, the release added.
Incorporated in 1981 as a public sector enterprise, NALCO is Asia's largest integrated aluminium complex, encompassing bauxite mining, alumina refining, aluminium smelting and casting, power generation, rail and port operations. Commissioned during 1985-87, Nalco has emerged to be a star performer in production, export of alumina and aluminium, and more significantly, in propelling a self-sustained growth.

What is the MoU?
DPE presents annually to the Parliament an overview of the financial and physical performance of CPSEs based on data collected directly from the CPSEs. Such data are validated from annual reports or accounts furnished by the companies. The MoU is a negotiated document between the government and the management of the PSE outlining the objectives of the agreement and the obligations of both the parties. The main purpose of the MoU system is to ensure a level playing field to the public sector enterprises vis-à-vis the private corporate sector. Evaluation of MoU of the CPSE is done at the end of the year on the basis of actual achievements vis-à-vis the MoU targets. CPSEs are required to submit performance evaluation reports on the basis of audited data to DPE after approval of the Board of CPSE within the target date of August 31 of every year.
The MoU system in India was first introduced in 1986 as result of the recommendations of the Arjun Sengupta Committee Report (1984). 

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