NALCO's $3.5bn bet: 0.5Mt aluminium smelter, 1kMW power plant, sustainability push

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India’s state-owned National Aluminium Company Limited (NALCO) is preparing for one of its largest expansion phases, with plans to invest INR 280-300 billion (USD 3.2-3.5 billion) over the next three to four years to ramp up aluminium production capacity while advancing its decarbonisation roadmap.

The proposed investment will primarily fund the construction of an aluminium smelter with a production capacity of 500,000 tonnes per annum and a 1,000 MW captive power plant, according to NALCO Chairman and Managing Director Brijendra Pratap Singh.

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Singh mentioned that the company is currently preparing the Detailed Project Report (DPR) for both projects. Construction activities are expected to begin by the end of 2027, with commissioning targeted for 2030 or 2031.

Green energy and rare earth goals

In parallel, NALCO aims to source 30 per cent of its power requirement from renewable energy by 2030, reducing the carbon footprint of its aluminium production.

The company has already commissioned 198 MW of wind and solar power capacity as part of this strategy to further increase renewable energy deployment by 2030.

Moreover, NALCO is expanding its mineral exploration activities while collaborating with research institutions on rare earth element recovery. While it helps the company imprint its presence in the critical minerals segment, it reinforces India's efforts to secure strategic raw material supplies.

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