NALCO’s Rs 30,000 crore Anugola Smelter expansion project gains momentum

New Delhi: National Aluminium Company Limited (NALCO) is making progress on its proposed Rs 30,000 crore brownfield aluminium smelter expansion project at Anugola in Odisha, with key statutory approvals, technology partnerships and power infrastructure initiatives in place.

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The project aims to add 0.5 million tonnes per annum (MTPA) of aluminium smelting capacity, taking NALCO’s total capacity from the existing 0.46 MTPA to approximately 1 MTPA.

As part of the preparatory work, a meeting of the Rehabilitation and Peripheral Development Advisory Committee (RPDAC) was recently held to facilitate land acquisition and expedite matters related to compensation and rehabilitation for the project.

On the technology front, NALCO has entered into an agreement with Emirates Global Aluminium (EGA) for licensing its proprietary smelting technology for the proposed plant. The partnership is expected to enable the adoption of globally established and energy-efficient aluminium production processes.

The expansion project will require an additional 1,100 MW of power. To meet this requirement, NALCO has partnered with NLC India Limited to establish a 50:50 joint venture company for setting up a 1,080 MW captive thermal power plant comprising four units of 270 MW each.

Alongside conventional power generation, NALCO is also planning to integrate 200-250 MW of renewable energy into the project's power ecosystem.

The Anugola smelter expansion is targeted for commissioning in 2030-31 and is expected to significantly strengthen NALCO's aluminium production capacity.

The project is part of NALCO's broader expansion strategy, which also includes the 5th Stream Alumina Refinery Project at Damanjodi. Both projects are being pursued with the support of the Government of Odisha and the Ministry of Mines.

The commissioning of the 5th Stream Refinery is expected to generate surplus alumina even after meeting the additional requirements of the proposed Anugola smelter. NALCO plans to initially channelise this surplus towards export markets while exploring opportunities to establish new greenfield aluminium projects in India.

In this context, the company is also evaluating a proposed 0.5 MTPA greenfield aluminium smelter at a suitable location in the country. The proposed facility would enable NALCO to convert surplus alumina into finished aluminium, increasing domestic value addition and strengthening its long-term production capabilities.

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The expansion initiatives are expected to generate employment, promote skill development and support the growth of downstream and ancillary industries in Odisha. They also align with the government's objectives of boosting domestic aluminium production and advancing the Make in India and Atmanirbhar Bharat initiatives.

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