National Aluminium To Cut Capex Due To Land-Buy Delays

MUMBAI, Nov 02, 2010 (Dow Jones Commodities News via Comtex) -- National Aluminium Co. (532234.BY) won't spend as much as it initially planned on capital expenditure this fiscal year due to a delay in land acquisition for a coal block, a senior executive said Tuesday.

The state-run Indian aluminum producer had budgeted INR13.90 billion of capital expenditure in the financial year that started April 1.

"Land acquisition for the Utkal-E coal block is still not completed," S.C. Dash, executive director of finance, said during a conference call with analysts. "So our capex will be lower for this fiscal year."

It will spend INR14 billion to develop the coal block and to expand its aluminum production capacity in the next fiscal year, he said.

The company had cash reserves of INR47.70 billion as of Sept. 30.