Endowed with a rare vision and vitality, having garnered thirty years of rich experience in the mining and metal sector, Tapan Kumar Chand, new CMD of National Aluminium Company (Nalco), had his training in Advanced Management Programme at the International Centre for Promotion of Enterprises (ICPE) in Western Europe and further at the Queensland University of Technology, Australia. He is committed to providing a system-driven management and strong business sense to make Nalco products cost-competitive, besides extending diversification, top turnover, safety as a culture, welfare of community through benevolent CSR activities. In Corporate Governance, he was adjudged an outstanding performer in Certificate Course conducted by SCOPE and the Dept of Public Enterprises for Directors and CMDs. He breathes an air of robust optimism and bristles with foresight, far sight and insight to catapult this giant technologically excellent industry Nalco on its desired growth trajectory. In an interview to The Pioneer, Chand spoke to Sugyan Choudhury from his office in Bhubaneswar.
What are your vision plans for NalcoIJ
As you know, Nalco is the only Navratna company in Odisha. My vision plans are that Nalco should be a global player in the mining, metal and energy sectors. Towards this realisation, we have planned how to increase the existing metal production, alumina production and raise bauxites. As far as mineral is concerned, we are thinking how to avail the opportunity of Government policies like introduction of merchant mining. If we could join the auction and avail certain mines like coal and iron mines and then if Nalco could be able to have minerals as one of its products in its basket. As far as energy is concerned, we have diversified the renewable energy like wind and solar and are now contemplating to put up windmills and solar plants. We also want to go as a model independent power producer. Thus, our main motto is diversification of products, then increasing the volume of production and go for expansion and modernisation of our plants. Other target is to increase our networks in the domestic as well as in the international market.
What’re the items on the top of your agenda for immediate implementationIJ
Currently, the metal market is undergoing extreme sluggishness, be it ferrous or nonferrous. This is mainly because of China becoming over-surplus and its domestic consumption going down. They are putting a lot of their metals like iron, aluminium, copper in the international market and the result is prices are going down. It is, therefore, needed on our part to keep us afloat. We have adopted a twin strategy: focus on cost reduction and maximise revenue realisation. We are effecting cost reduction by reducing production costs and introducing certain processes by reducing consumption, eliminating wastes and generating revenue by upgrading waste products and at the procurement stage. For maximising revenue realisation, we are emphasising on value-added products so that customised products give better revenue. On the social front, we give emphasis on welfare activities, CSR and towards environment. Our CSR and welfare activities are known as empathetic CSR. This is how NAlCO is leaving no stones unturned as a responsible corporate citizen.
Any plans for current or future expansionIJ
Yes. We have an elaborate plan for a fifth refinery at Damanjodi for increasing aluminium production by 1 MT at an estimated cost of Rs6,500 crore. This is based on allocation of Pattangi mines by the Odisha Government, with which the proposal is pending. The Central Government has already earmarked the mines for the purpose. Once the consent for Pattangi mines allocation is obtained from the State Government, the Damanjodi project will come up immediately.
The second expansion programme is a smelter plant and a power plant in Sundargarh district with an investment of Rs19,000 crore. Water clearance has been given and land already located. We are also going to set up a .5-million-tonne refinery in Gujarat along with the Gujarat Mineral Development Corporation at an approximate cost of Rs6,500 crore. Besides, we are going to establish a 100-MW wind power plant and a 50-MW wind power in Rajasthan and Madhya Pradesh, for which an approximate amount of Rs660 crore will be invested. We also want to set up a 20-MW solar power plant at a cost of around Rs40 crore. Again, we are trying to have an MoU with the Nuclear Power Corporation of India for a JV and, accordingly, a company has been set up where the investment will be Rs800 crore to Rs900 crore. We have plan for a titanium slash plant with Indian Rare Earths ltd.
What are the stumbling blocks in acquiring Pattangi minesIJ Are you not getting cooperation from the State GovernmentIJ
Right now, as far as Pattangi is concerned, the Government of India has earmarked Pattangi in favour of Nalco and communicated it to the Government of Odisha for their approval since 2010. The matter is lying with the State Government. As far as I know, the State Government is nourishing a positive attitude for Nalco since Odisha will have an investment to the tune of Rs7,000 crore. In case the State Government says no, the investment would be shifted to Gujarat or Maharashtra, where they are offering warmly for establishment of refineries. The matter is at a final stage now, and I believe the Government with all its collective wisdom will lend its timely approval. As far as I know, the State Government wants us to undertake some visible CSR activities. I am sure we would do the same, once the Pattangi block is allocated to us.
Despite the slump in the international aluminium market, how Nalco continues to make profit year after yearIJ
Nalco’s continued market success is owing to its dedicated workforce. Nalco’s bauxite production cost is lowest in the world. The second is Nalco goes up in value addition at different stages; its products are cost-competitive. The other thing is the focus on cost reduction and maximisation of revenue realisation. The other one which helps Nalco is its brand name as a consistent supplier, quality producers and the best customer service provider.
What would be the fortune of Nalco once the world market constraints are overIJ
During these trying times, we are concentrating on upgrading replacing our equipments and getting the plant ready with a holistic approach. Secondly, our expansion activities are going on at various levels. Once the market condition looks up, Nalco is ready having a strong cost content policy already grounded and with increasingly better volumes coupled with expansion and with a strong determination to go ahead for better revenue realisation. There would be a quantum jump in Nalco’s performance. Undoubtedly, Nalco would be a stellar company to watch.
Nalco spends a lot on CSR activities. Could you provide some detailsIJ
Nalco spends 2 per cent of its profit on CSR activities. It has an elaborate system for identifying, implementing and evaluating the CSR projects. It spends Rs20 crore to Rs25 crore per annum on CSR activities. Besides, Rs26 crore is allocated per annum towards running and maintenance of four schools, two English medium and two Odia medium. We are also running two medicals, one at Damanjodi and one at Angul, for peripheral villagers, which costs around 46 crore. Besides, Nalco has set up four mobile medical services for medical services at doorsteps and that costs around 1.8 crore. An exemplary work is that Nalco is extending education to 655 BPl students at the KISS, Koraput Development Foundation and Koraput Vikas Kendra costing around 2 crore per annum. One very visible thing is setting up of a hi-tech eye centre at Angul in collaboration with the lV Prasad Institute which will cost around 8 crore.
What sort of cooperation do you expect from the State GovernmentIJ
Nalco represents the technological might of India in the persona of Odisha. It is the dream and pride of Odisha. In its new policy, the Central Government wants to spend Rs26,284 crore on Nalco out of over Rs1,70,000 crore. This would be the largest investment by a single company like Nalco which is totally Odisha-based. It is the self-dignity of Odisha people that such a sound technologically excellent company is a forward partner in the State’s progress. Nalco’s fortune is inextricably linked with Odisha. Hence, we expect the State Government will extend its warm cooperation for a company that hopes, endures and dreams for the progress of Odisha.