NALCO reveals detailed plan for its INR 30,000 crore expansion plans — following five years deemed crucial
NALCO’s announcement of INR 30,000 crore (USD 3.45 billion) investment in aluminium business expansion brought to the public by Union Minister of Coal & Mines and Parliamentary Affairs, Pralhad Joshi, is its first major capex in recent times, including setting up an INR 17,000 crore (USD 1.95 billion) aluminium smelter capacity.
State-owned Navratna PSU, National Aluminium Company (NALCO), has chalked out a distribution plan for its progressive INR 30,000-crore expansion plan, marking its first massive capital expenditure in contemporary times. The development project is set to conclude by FY30, with an INR 17,000-crore investment in an additional aluminium smelter construction and noteworthy projects in mining and downstream product manufacturing. Global mining leader Rio Tinto Canada has officially joined as a technology partner for this groundbreaking initiative.
To finance the large-scale capex, NALCO, a debt-free CPSE, will need to raise funds, targeting a debt-equity ratio of 70:30, according to sources. Additionally, INR 13,000 crore (USD 1.497 billion) will be allocated for a joint venture with NTPC to secure 1,200 MW of captive power, with 25-30 per cent coming from renewable energy sources.
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