No financial aid by Nalco to private universities: Govt
State-owned aluminium producer Nalco has funded many educational institutions as part of its corporate social responsibility but no financial assistance has been given to any private university, the government said Friday.
New Delhi: State-owned aluminium producer Nalco has funded many educational institutions as part of its corporate social responsibility but no financial assistance has been given to any private university, the government said Friday.
"Financial assistance from Peripheral Development Fund has been provided by Nalco to many educational institutions, trusts, etc, over the years. Financial assistance has not been provided to any private university," Mines Minister Dinsha Patel said in a written reply to the Lok Sabha.
He was replying to a question whether National Aluminium Company Ltd (Nalco) has extended financial assistance to a private university from the Peripheral Development Fund (PDF) in gross violation of laid down norms/guidelines.
According to the Mines Minister, Nalco had provided financial assistance of Rs 30 lakh Centurion School of Rural Enterprise Management between 2008-09 and 2009-10 for purchase of aluminium fabrication machines and computers for the benefit of their students.
"When the funds were released, Centurian School of Rural Enterprise Management was not a private university but an engineering and management institution," Patel said.
He added that Nalco Board has approved allocation of 1 percent of profit of the preceding year for periphery development activities in the succeeding year.
Out of the allocable amount of PDF, Nalco allocates 40 percent each to its mines and refinery complex at Damanjodi and smelter and power complex at Angul, while rest 20 percent is retained for corporate level activities, the Mines Minister said.
He added that an Odisha government constituted Rehabilitation and Periphery Development Advisory Committee decides the expenditure on various peripheral development activities at Nalco's Damanjodi and Angul complexes.
Replying to a separate question, Patel said Odisha-based aluminium producer's net profit has declined in last three years due to various reasons, including fall in metal prices in London Metal Exchange, increase in input costs and increase in employee expenditure due to pay revision.
The company had recorded a net profit of Rs 1,069 crore in 2010-11. However, this has come down to Rs 850 crore during the last fiscal. Besides, the aluminium producer reported a net profit of Rs 228 crore during the first half of the current financial year, he said.
"The declining trend of profit of Nalco has been viewed with concern by the government and appropriate directions are given to the company's management by the (Mines) Ministry after performance review to improve its performance," Patel said.