Visakhapatnam: National Aluminium Company Limited (NALCO) is exploring plans to establish a major greenfield aluminium smelter in Andhra Pradesh’s Srikakulam district, with a proposed investment of around ₹18,000 crore. A central inspection team is expected to visit the identified site at Naupada in Santabommali mandal to assess its suitability for the project.
The proposed facility is expected to have a production capacity of 0.5 million tonnes per annum (MTPA). NALCO is exploring more than 4,000 acres of salt lands for the project, which could benefit from the developing port, road, railway and proposed airport infrastructure in the region.
Nalco Explores 4,000 Acres for Greenfield Aluminium Smelter
According to discussions at the Centre, NALCO is considering a large parcel of salt lands at Naupada for setting up the proposed aluminium smelter. The project is planned near the upcoming Mulapeta Port in Santabommali mandal.
NALCO Chairman and Managing Director B. P. Singh, along with senior company officials, recently met Union Civil Aviation Minister K. Ram Mohan Naidu and Union Coal and Mines Minister G. Kishan Reddy to discuss the proposed project.
The central inspection team’s visit is expected to help assess the feasibility of using the identified land for the smelter complex. The project’s progress will depend on the site’s suitability and other necessary assessments and approvals.
Key details of the proposed project include:
- Company: National Aluminium Company Limited (NALCO)
- Project: Greenfield aluminium smelter
- Proposed capacity: 0.5 million tonnes per annum (MTPA)
- Estimated investment: Around ₹18,000 crore
- Proposed location: Naupada, Santabommali mandal, Srikakulam district
- Land under consideration: More than 4,000 acres of salt lands
- Proposed export volume: 1.3 lakh tonnes of aluminium, according to sources
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Mulapeta Port Infrastructure May Support Aluminium Project
The proposed smelter’s location near Mulapeta Port is an important factor in the ongoing assessment, given the infrastructure being developed around the port.
More than 80% of Mulapeta Port’s construction has been completed, while work on the connecting national highway is in progress. A 10-km railway line linking the port is also under construction, and an airport has been proposed around 30 km from the port.
The developing connectivity could support the movement of raw materials and finished aluminium products, including exports, if the proposed smelter becomes operational.
The port’s proximity may also strengthen the area’s potential for industrial development by providing access to maritime transport and supporting logistics infrastructure.
Centre Assesses Availability of Salt Lands at Naupada
The Centre owns more than 6,000 acres of salt lands in the Naupada area, although a substantial portion has been leased to private salt companies.
According to sources, leases covering around 4,000 acres expired approximately eight years ago, while leases over another 1,500 acres are due to expire next year.
The availability and suitability of this land are now being assessed for the proposed aluminium smelter. The expected central team’s inspection will be an important step in determining whether the site can be considered for the project.
The land assessment will also need to take into account existing lease arrangements and competing requirements for the area.
Visakhapatnam Port Authority Also Interested in Salt Lands
The proposed NALCO project is not the only potential use being considered for the salt lands. Visakhapatnam Port Authority has also expressed interest in the area for future port-related activities.
The interest comes amid plans to shift dusty cargo operations from Visakhapatnam to Mulapeta Port. The proposed relocation could increase the importance of the new port and create additional requirements for port-related land and infrastructure.
As a result, the future use of the salt lands may involve competing industrial and port-related requirements. The outcome of the land assessment and the decisions of the concerned authorities will be important in determining the project’s next steps.
About NALCO
National Aluminium Company Limited (NALCO) is a Navratna Central Public Sector Enterprise under the Ministry of Mines, Government of India. Established in 1981, the company operates across the aluminium value chain, including bauxite mining, alumina refining, aluminium smelting and power generation. Its operations support India’s aluminium industry and contribute to domestic metal production and exports.
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