National Aluminium Company (Nalco) announced an ambitious plan to invest ₹30,000 crore over the next five years to set up a new aluminium smelter and an associated coal-based power plant, its Chairman and Managing Director, Brijendra Pratap Singh, revealed.
Major Allocation for Odisha Smelter
Out of the total investment, ₹18,000 crore will be directed toward establishing the proposed aluminium smelter in Odisha, Singh said. This marks one of the company’s most significant expansion initiatives in recent years. To fund the project, Nalco will adopt a mix of debt and internal resources, ensuring a balanced approach to financial management.
Power Plant to Support Smelter Operations
In addition to the smelter, Nalco plans to invest ₹12,000 crore in a coal-based captive power plant to ensure reliable energy supply for the new facility. The company is currently in discussions with Coal India and NTPC to secure necessary coal linkages and power arrangements.
Focus on Raw Material Security
As part of its growth strategy, Nalco is actively working to strengthen its raw material base. The company is exploring acquisitions of new bauxite and coal mines, which are essential for sustaining large-scale operations. Furthermore, Nalco aims to bid for critical mineral mines in India, aligning with the government’s vision for securing strategic resources.
Market Dynamics and US Tariff Impact
Nalco noted that the domestic alumina market is facing surplus supply pressures following additional US tariffs on aluminium imports. In June 2025, US President Donald Trump doubled import duties on most aluminium categories from 25% to 50%, while keeping certain categories at 25%. The global trade shift has influenced pricing trends, creating both challenges and opportunities for Indian producers like Nalco.
Pursuing Critical Minerals Through KABIL
Looking beyond aluminium, Nalco is also eyeing equity participation in lithium assets in Australia via Khanij Bidesh India Ltd (KABIL) — a joint venture formed in 2019 under the Ministry of Mines. KABIL brings together Nalco (40%), Hindustan Copper (30%), and Mineral Exploration Corporation Ltd (30%) to identify and develop critical minerals such as lithium and cobalt from overseas sources. This initiative aims to secure India’s long-term supply chain for clean energy technologies.
International Ventures in Argentina and Australia
As reported by business-standard.com, KABIL has already secured exploration rights for lithium blocks in Argentina and signed agreements with Australia to jointly evaluate mineral projects. These steps reinforce India’s commitment to building a robust critical minerals ecosystem for future energy and industrial needs.
