He keeps busy since Nalco is at the crossroads. While the company has embarked on a massive expansion programme, promising a virtual aluminium revolution, it is also plagued by rampant indiscipline among its work force that resulted in an embarrassing series of pot failures only recently. But Johri has never been known to shy away from challenges. He faces them head on. With a similar degree of elan, he took questions from our correspondent, Dilip Bisoi, in an exclusive interview.

What is happening to Nalco's Rs 3727-crore expansion programme?

As per the mid-term appraisal, we are on schedule so far as the Rs 1665-crore mining andrefinery expansion project is concerned. We launched the project in December 1996 and it will be completed by March 2001. We are not anticipating any delay. Since no new plant is coming up nor any expansion project is going on in the country, we are getting all the attention of the equipment suppliers and construction contractors. With market conditions quite favourable, we would be able to complete the project within the scheduled time and prescribed cost.

What about the smelter and captive power plant expansion project?

The Rs 2062-crore aluminium facilities expansion programme will be implemented simultaneously with the alumina expansion project. By March 2002, the smelter and captive power plant expansions will be completed.

Hindalco has snatched away the industry leadership from you. Will you be able to regain your leadership?

With the completion of the expansion project, Nalco's alumina producing capacity would be increased to 15.7 lakh tonnes from 8 lakh tonnes and aluminiumcapacity would go up to 3.40 lakh tonnes from the present 2.30 lakh tonnes. This would make the company once again the industry leader in the country by 2002.

How are you going to finance the project?

About 60 to 70 per cent of the project cost will be met from Nalco's internal resources. The remaining Rs 1,500 crore will be financed through market borrowing. We will start raising funds from the market towards the second half of next fiscal.

How are you going to raise the funds?

That will depend on the market conditions prevailing at that time.

Do you think that the zero-debt status of Nalco would help in raising the funds?

Yes. Nalco's excellent debt management has generated tremendous amount of confidence among investors. You see, we have saved about Rs 110.74 crore after accounting for the opportunity cost of the funds by our pro-active forex debt management.

Are you planning any other downstream project?

No. We will start looking at other opportunities only inthe beginning of 2002 by then our expansion project will be completed. However, we will go ahead with the aluminium auto wheel project. We have received offers from four international companies for technical collaboration and we are finalising a partner.

Nalco is often criticised for its large equity base of Rs 1,288 crore. When is its capital restructuring taking place?

The centre is actively looking at our proposal to convert 50 per cent of the equity into debt.

Now that Nalco's disinvestment programme has been deferred, do you apprehend that the restructuring would be delayed?

The disinvestment and the restructuring are not linked. But, our ministry (mines) has told the ministry of finance that a disinvestment proposal should be considered only after the capital has been restructured.

How are you positioned so far as potlines are concerned?

We are on schedule. Within the next two months we will be able to restore normalcy in the area. By July this year about 240 pots becamedefunct. However, we arrested the failure by mid-July and started working on the pots. By October 13, we restored 280 pots and another 110 are expected to be added to the potlines by December.

How badly are you hit by the pot failure?

The production loss would be about 40,000 tonnes worth about Rs 80 crore.

Don't you think this would tell upon your bottomline?

The loss would not be so much as apprehended.

What is your plan for the situation?

You see for every tonne of aluminium production loss, I am saving two tonnes of alumina. I would be exporting one lakh tonne more alumina this year. As against the 4.65 lakh tonnes export last year, Nalco will export 5.65 lakh tonnes of alumina this fiscal. During the first half of the year, we have already exported 3.06 lakh tonnes of alumina. Then, we are exploring the export market for anodes. The company, which is producing 10,000 anodes per annum at its Anugul plant, may not be able to consume the entire production because of thepotline failures. So the surplus anodes will be sold in the international market. We will also sell scrap anodes keeping 35 per cent of the stock for recycling. Nalco's financial result may spring some surprise at the end of the fiscal.

The Nair committee constituted by the ministry of mines to probe the pot failure incidents has indicted the Nalco for mismanagement...

We are implementing the suggestions made by the Nair committee. Efforts to improve work culture have been initiated and the director (production) has been posted at Anugul to bring discipline at the shop floors.