NALCO’s ambitious capex plans involve building an aluminium smelter facility worth INR 17,000 crore, take up significant projects for mine expansion and manufacturing of downstream products by FY-30.

Feb 20, 2025

State-owned National Aluminium Company (NALCO) has decided to build an aluminium smelter facility worth INR 17,000 crore, take up significant projects for mine expansion and start manufacturing downstream products by FY-30, under an ambitious expansion plan worth INR 30,000 crore.

As per the leading manufacturer of alumina and aluminum, it has onboarded global mining giant Rio Tinto Canada as a technology partner for the initiative, its first major capex in recent times.

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Sources said the CPSE, which currently had zero debt, would need to leverage debt to fund one of its first major capex in recent times, with a projected debt-equity ratio of 70:30.

NALCO said the smelter plant with a proposed capacity of 0.5 million TPA was expected to become operational by FY30, with initial investments beginning in FY27 and peak spending occurring between FY28 and FY30.

The CPSE said it was holding contribution-funding talks with the National Thermal Power Corporation (NTPC) for a joint venture worth INR 13,000 crore to secure 1,200 MW of captive power, with 25-30 percent coming from renewable energy sources. The company was also evaluating casting additional facilities for aluminium production.

Chairman and Managing Director of NALCO, Mr. Brijendra Pratap Singh, said that they have received necessary approvals, with the Engineers India Ltd (EIL) preparing the framework.

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NALCO further said that it would continue its alumina refinery expansion through INR 2,000 crore allocated for capital expenditure in FY25. The capex plans included expansion of a fifth-stream alumina refinery expansion worth INR 1,700 crore, which was 70 percent complete and expected to be commissioned soon, targeting an output of 700-800 kilo tonnes in FY27.