IMPLICATIONAS FROM 33rd ANNUAL REPORT IN COMPARISON TO PREVIOUS

YEARS:
Revenue from operations was lower compared to previous year primarily on account
of a strategic decision to limit metal production by using electricity generated
through linkage coal only, as use of high priced imported coal will not be cost
effective at the current level of LME. NALCO still could achieve a higher profit due to
certain management interventions like complete stoppage of power purchase from
the Grid, improved efficiency in consumption of fuel oil, reduced use of imported
coal, reduction in metal production etc. and higher volume of alumina production
and sale.
The Board has recommended a final dividend of Rs.0.40 per share (8% on the equity
shares of Rs.5/- each) for the financial year 2013-14 in addition to the interim
dividend of Rs.1.10 per share (22% on equity share of Rs.5/- each), already paid in
March, 2014. The total dividend payout for the financial year 2013-14 works out to
Rs.386.59 crore as against Rs.322.15 crore for the previous year. Total dividend for
the year including tax is Rs.452.29 crore which works out to about 70% of net profit.
The final dividend will be paid after approval in the ensuing Annual General Meeting.

BENCHMARKING:
Benchmark = CMP * A + RMP * B + HMP * C
Where CMP = Cast metal production
RMP = Remelt metal production
HMP = Homogenization metal production
A = Basic cast house benchmark
B = Remelt benchmark
C = Homogenization benchmark
The IAI Anode Effect Survey provides valuable benchmark information to
respondents, allowing producers to judge their performance relative to others
operating with similar technology. The anode effect benchmark data for PFC
emissions per ton of production are presented in this section in the form of
cumulative probability and cumulative production graphs by technology.

Establishing a primary emissions benchmark curve that takes both direct emissions
as well as the indirect emissions from electricity use in the furnace into account,
using a uniform emission factor for electricity. In the allocation procedure, the
resulting primary benchmark needs to be multiplied with the plant-specific share of
direct emissions to the total primary emissions.
As per the benchmarking it is observed that NALCO is has high cumulative fraction
of reporting entities with a value of 0.63 as per the industrial benchmark value of
0.67.

ROAD MAP:
The road map for NALCO has been illustrated taking into considerations the foreign
policies and future proposals on energy and climate change so as to ensure
international competitiveness. In order to ensure the same the central government
of India needs to implement the following:

Full
compensation
for the indirect
effecthelp
of the
Trading
Support
for theindustry
aluminum
industry
IndiaEmissions
becometothe
best
An ambitious
policy
giving to
a 15 years
visibility
potential
Scheme
on
electricity
prices
is
urgently
needed
to
ensure
short-term
recycling
society
in the
world, to
and
the adoption
of measures
to avoid
investors,
including
measures
develop
an adequate
framework.
survival
of the
industry.Full
for renewablesregions.Promotion
costs.
aluminum
scrap
exports compensation
to less emissions-efficient
and development of an innovation policy enabling the industry to retain
its technological advantage over the rest of the World.

The illustrations of the road map has been brought up with the following semantic
changes:
The Commodity Challenge through the application of technology.
Reduce operating costs of existing plants by 3% per annum.
Achieve substantial energy efficiency gains against a benchmark of reducing
total energy consumption to 25% below current bauxite specific best
practices.
Produce a product that meets all of our customers current and future needs.
This indicates a need to improve over a 5 to 20 year period, with 3 year
intermediate goals, through
Increasing yield by 20% above current bauxite specific best practice
Achieving a simple capable process by significantly reducing process
variability (3 sigma of < 5 %) through elimination of the effects of scaling and
blockages, by more reliable equipment, better materials, process automation,
and advanced control
Reducing total energy consumption through improved methods of calcination,
cogeneration and process improvements
Developing and applying combustion and power generation technology from
which waste heat sources can be used for production of alumina.
Developing capable processes to achieve a significant reduction and recycling
of all other inputs and outputs.
Focusing on opportunities with synergistic industries such as caustic soda and
power generation.