NALCO (National Aluminium Company Limited) has formally communicated to stock exchanges seeking waiver of penalties imposed for non-compliance with SEBI regulations. The company's board has taken cognizance of the fines and directed management to pursue penalty waivers, emphasizing its status as a Central Public Sector Enterprise.

Updated Penalty Structure and Board Response

The latest communication reveals updated penalty amounts from both exchanges:

The penalties relate to non-compliance with Regulation 17(1) of SEBI (LODR) Regulations, 2015 for the quarter ended September 30, 2025. Each exchange imposed a basic fine of ₹4.60 lakh plus 18% GST, totaling ₹5.43 lakh per exchange.

Board Meeting Decisions and Actions

In the 362nd Board meeting held on December 9, 2025, directors formally addressed the penalty issue. The board took the following key decisions:

Company's Defense Strategy

NALCO has consistently maintained that as a CPSE, director appointments are beyond its control. The company's defense includes:

• Presidential Authority: All directors are appointed by the President of India
• No Company Control: NALCO cannot independently appoint independent directors
• Continuous Follow-up: Regular communication with Administrative Ministry
• Statutory Compliance: Efforts to meet Companies Act 2013 and SEBI LODR requirements

Regulatory Timeline and Communications

The penalty notices were issued by exchanges on November 28, 2025, following which NALCO initiated a structured response:

The company has requested favorable consideration of its waiver application, emphasizing that the non-compliance stems from circumstances beyond its operational control. NALCO continues to pursue the matter with the Ministry of Mines to expedite the appointment of requisite independent directors to ensure future compliance with all statutory requirements.

National Aluminium Company has officially confirmed the award of a major Mine Development and Operations (MDO) contract worth ₹5032.00 crores to Dilip Buildcon Limited for the Pottangi Bauxite Mines. The formal announcement, made through a stock exchange filing, represents one of the largest mining contracts in the infrastructure sector and establishes a long-term strategic partnership between the two companies.

Official Contract Confirmation

National Aluminium Company formally communicated the contract award details to stock exchanges, providing comprehensive information about this significant business development. The official documentation confirms Dilip Buildcon Limited as the L-1 bidder for this prestigious mining contract.

Comprehensive Project Scope

The MDO contract encompasses the complete development and operation of Pottangi Bauxite Mines along with Overland Conveyor Corridor (OLCC) and allied facilities. This comprehensive scope demonstrates the strategic importance of the partnership and Dilip Buildcon's capabilities in managing large-scale mining operations.

Regulatory Compliance and Transparency

National Aluminium Company's official filing confirms that the promoter/promoter group/group companies have no interest in Dilip Buildcon Limited, ensuring complete transparency in the contract award process. The company has also confirmed that this transaction does not fall within related party transactions, maintaining regulatory compliance standards.

Strategic Significance

The official confirmation of this ₹5032.00 crore contract provides substantial revenue visibility for Dilip Buildcon over the 25-year period. For National Aluminium Company, this partnership ensures efficient mining operations at the Pottangi Bauxite Mines with fixed base mining charges of ₹423.00 per ton, providing cost predictability and operational clarity for the long-term engagement.