Nalco to refund Rs 30 crore excess advance to its buyers

National Aluminium Co Ltd (Nalco) will, on its own, refund the excess advance paid by customers. Around Rs 30 crore excess advance accumulated over the years will be refunded. At present, about 70% of Nalco's domestic sales take place against advance payments. According to the prevailing practice, the company makes refunds against excess advance as per customers' requests. "The practice is not customer friendly, so the company has decided to go for automatic refund of unadjusted balance amounts without waiting for the request", Nalco director (finance) BL Bagra told FE. To ensure greater transparency and customer friendliness, the amount will be transferred electronically to the bank accounts of customers, he added. Bagra said the Nalco account is saddled with Rs 30 crore excess advance of about 400 customers over the years. Initially, the suo motu refund will be made at the end of each quarter within a threshold limit of Rs 1 lakh. The refund will be automatic, unless a customer specifically desires for roll over of the balance for continuation of his transaction. The company will also send the monthly statement of accounts to all customers for their reconciliation and confirmation. "The revised pro-active policy is expected to make customers happy as they buy heavily from Nalco for its consistent quality and assured supply", Bagra said.