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NALCO Eyes Andhra Pradesh for New 0.5 Million Tonne Aluminium Smelter
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News18•29-09-2026, 10:45
NALCO Eyes Andhra Pradesh for New 0.5 Million Tonne Aluminium Smelter
- •NALCO plans a new 0.5 million tonne aluminium smelter in Andhra Pradesh to convert all expanded alumina capacity into aluminium, eliminating alumina exports.
- •The company's alumina production capacity will increase from 2.1 million tonnes to 3.1 million tonnes by FY28 with a new refinery.
- •This new smelter will allow NALCO to utilize 100% of its expanded 3.1 million tonnes alumina capacity for its own aluminium production, targeting 1.5 million tonnes total aluminium capacity.
- •The Andhra Pradesh project, requiring an investment of approximately Rs 18,000 crore for the smelter and Rs 11,000 crore for 1,000 MW power, is in talks with the state government.
- •NALCO is also expanding its Angul facility with a 0.5 million tonne brownfield expansion using EGA's DX+ Ultra technology, part of a Rs 25,000 crore capital expenditure plan till 2031, with the Andhra Pradesh project being additional.
Key Questions Answered
NALCO is contemplating a new 0.5 million tonne smelter in Andhra Pradesh to convert 100 per cent of its expanded alumina capacity of 3.1 million tonnes into value-added aluminium, ensuring the company will no longer export alumina after the expansion.
A 0.5 million tonne smelter requires an investment of about Rs 18,000 crore, along with another Rs 11,000 crore for 1,000 MW of power, which would be over and above the company's Rs 25,000 crore capital expenditure outlay till 2031.
NALCO signed a technology licensing agreement with the UAE’s Emirates Global Aluminium (EGA) to use its DX+ Ultra smelting technology for a 0.5 million tonne per annum brownfield expansion at Angul.
