NALCO to Invest $3.43 Billion in Smelter and Power Plant

National Aluminium Company Limited (NALCO), a public sector enterprise under the Ministry of Mines, announced a landmark investment of ₹300 billion (~$3.43 billion) to build a new aluminium smelter and a coal-based power plant. The initiative marks a significant push in India’s drive toward industrial infrastructure development and energy security, especially in the metals sector.

Investment Breakdown and Project Timeline

Speaking at a press briefing in New Delhi, NALCO Chairman and Managing Director Brijendra Pratap Singh confirmed that the total investment will span five years and will be financed through a mix of debt and internal accruals.

Key Details

• ₹180 billion allocated for an aluminium smelter in Odisha
• ₹120 billion earmarked for a coal-fired power plant
• Total investment: ₹300 billion (~$3.43 billion)
• Project funding: Debt + Internal accruals

This large-scale project reinforces India’s strategy to boost domestic metal production and reduce reliance on imports.

Strategic Partnerships in Energy

To execute the power plant project, NALCO is currently in discussion with Coal India and NTPC, two of India’s largest state-owned enterprises in the energy sector. The planned coal power plant will ensure dedicated electricity supply to support high-energy smelting operations, critical for aluminium production.

This approach reflects an integrated model where power generation and metal production operate in tandem to maximize efficiency.

Significance of the Odisha Smelter

Odisha, rich in bauxite reserves and industrial infrastructure, is a natural choice for the smelter. The new facility will,

• Expand NALCO’s production capacity significantly
• Support the ‘Make in India’ initiative by boosting domestic output
• Create thousands of direct and indirect jobs
• Strengthen India’s position in the global aluminium market

With growing demand for aluminium across sectors like construction, transport, energy, and packaging, this investment positions India to meet both domestic and export demand more effectively.