THEBUSINESSBYTES BUREAU

ANUGOLA/BHUBANESWAR, NOVEMBER 4, 2026

Navratna CPSE National Aluminium Company Limited (NALCO) is gearing up for a major leap in aluminium production with its proposed 0.5 million tonnes per annum (MTPA) brownfield smelter expansion project at Anugola in Odisha. Backed by an investment of approximately ₹30,000 crore, the ambitious project is set to nearly double the company’s existing aluminium smelting capacity from 0.46 MTPA to around 1.0 MTPA, marking a significant milestone in NALCO’s long-term growth strategy and strengthening India’s domestic aluminium production capabilities. With key statutory approvals, strategic technology partnerships and critical infrastructure initiatives progressing, the project is steadily moving towards its implementation phase.

As part of the preparatory process, a meeting of the Rehabilitation and Peripheral Development Advisory Committee (RPDAC) was recently convened to facilitate the acquisition of the requisite land for the proposed smelter expansion at Anugola. The initiative is aimed at expediting the land acquisition process and addressing issues relating to compensation, rehabilitation and peripheral development, thereby creating an enabling environment for the timely implementation of the project.

In a significant step towards adopting advanced aluminium production technology, NALCO has entered into an agreement with Emirates Global Aluminium (EGA) for licensing its proprietary smelting technology for the proposed Anugola smelter. The collaboration will enable NALCO to leverage globally proven, technologically advanced and energy-efficient aluminium production processes, contributing to improved operational efficiency, productivity and sustainability.

Power availability, a critical requirement for aluminium smelting operations, is also being addressed through strategic collaboration. The proposed expansion will require an additional 1,100 MW of power, for which NALCO has partnered with NLC India Limited to establish a 50:50 Joint Venture Company (JVC). The joint venture will set up a 4 × 270 MW captive thermal power plant with a total installed capacity of 1,080 MW to meet the expanded smelter’s power requirements. Complementing this arrangement, and in line with its commitment to environmental sustainability and the transition towards cleaner energy, NALCO is also envisaging the integration of 200–250 MW of renewable energy into the project’s overall energy ecosystem.

The 0.5 MTPA aluminium smelter expansion project at Anugola is targeted for commissioning during 2030-31 and is expected to substantially strengthen NALCO’s aluminium metal production capacity. The company’s major expansion initiatives, including the 5th Stream Alumina Refinery Project at Damanjodi and the proposed Smelter Expansion Project at Anugola, are being pursued with the continued support of the Government of Odisha and the Ministry of Mines, Government of India. Together, these projects are expected to provide a major impetus to industrial development, generate direct and indirect employment opportunities, strengthen the regional economy and create fresh avenues for investment. NALCO remains firmly committed to contributing to Odisha’s industrial transformation through sustained capital investment, skill development, employment generation and the promotion of downstream and ancillary industries.

Significantly, the commissioning of the ongoing 5th Stream Alumina Refinery at Damanjodi is expected to create a substantial surplus of alumina even after catering to the enhanced requirements of the proposed Anugola smelter. While the surplus alumina will initially be channelled towards export markets, NALCO is simultaneously exploring suitable locations across the country for establishing Greenfield aluminium projects as part of its long-term business expansion and capacity-building strategy.

In this direction, the company is also evaluating the possibility of setting up another 0.5 MTPA Greenfield aluminium smelter in the country. The proposed initiative is aimed at converting surplus alumina into finished aluminium within the domestic market, thereby enhancing value addition, strengthening the aluminium value chain and reducing dependence on imports. The move is also expected to create additional opportunities for industrial growth, employment generation and the development of downstream aluminium-based industries.

The proposed Greenfield initiative aligns with the Government of India’s vision of increasing domestic aluminium production, promoting indigenous manufacturing and maximising value addition within the country. It further reinforces NALCO’s commitment to the national missions of ‘Make in India’ and ‘Atmanirbhar Bharat’, while contributing to the long-term growth, resilience and global competitiveness of India’s aluminium industry.