National Aluminium Company (NALCO) has unveiled plans to invest ₹30,000 crore over the next five years, focusing on expanding its aluminium production capacity and securing raw material supplies. Chairman and Managing Director Brijendra Pratap Singh announced the investment on August 28, 2025.
Smelter Project in Odisha
- NALCO will allocate ₹18,000 crore to establish a new aluminium smelter in Odisha.
- The project will be funded through a mix of debt and internal accruals.
- The expansion aligns with the company’s long-term strategy to boost production capacity in response to growing domestic and global demand.
Coal-Based Power Plant
- An additional ₹12,000 crore has been earmarked for setting up a coal-based power plant.
- Discussions are underway with Coal India and NTPC to support the initiative.
- The power plant will ensure uninterrupted electricity supply for the upcoming smelter, making operations more efficient.
Raw Material Security
- To ensure steady supply of raw materials, NALCO is actively pursuing new bauxite and coal mines.
- The company is also exploring bids for critical mineral mines in India, as part of a broader strategy to strengthen its resource base.
Impact of Global Trade Policies
- Recent changes in US aluminium tariffs, where duties were raised from 25% to 50% in June 2025, have impacted global market dynamics.
- NALCO highlighted that the move has created surplus alumina in the domestic market, adding to supply-side pressures.
Overseas Ventures in Critical Minerals
- Through Khanij Bidesh India Ltd (KABIL) — a joint venture with Hindustan Copper Ltd and Mineral Exploration Corporation Ltd — NALCO is expanding its overseas footprint.
- KABIL has already secured lithium blocks in Argentina and is in talks with Australia for additional critical mineral projects.
Summary
NALCO’s ₹30,000 crore investment plan underscores its commitment to strengthening aluminium production and energy security. With major projects in Odisha and collaborations with Coal India, NTPC, and KABIL, the company aims to balance domestic expansion with global critical mineral ventures. However, evolving trade policies and market dynamics may influence its operational and growth trajectory in the years ahead.
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