New Delhi: In a significant push to scale up operations and attain Maharatna status by 2030, Navaratna PSU National Aluminium Company Ltd (NALCO) has unveiled plans for a massive ₹35,600 crore investment in brownfield expansion projects over the next five years. The strategic roadmap includes a new alumina refinery, aluminium smelter, and captive thermal power plant – all aimed at pushing the company’s turnover beyond ₹25,000 crore, a key benchmark for Maharatna classification.
Speaking to the media, NALCO CMD Bijendra Pratap Singh stated, “Our current turnover is around ₹17,000 crore. Once we add the new refinery, it will rise to ₹19,000–20,000 crore. With the smelter and power plant coming up, we will cross ₹25,000 crore.”
Maharatna Target: What It Means
To qualify as a Maharatna, a central PSU must achieve an average annual turnover exceeding ₹25,000 crore over three years, alongside strong profitability and global presence. Currently holding Navaratna status, NALCO is banking on this multi-phase expansion to meet the financial and operational benchmarks required for the higher designation.
Refinery Expansion to Add 1 Million TPA Capacity
The first leg of the investment plan involves a ₹5,600 crore project to expand NALCO’s alumina refining capacity by 10 lakh tonnes per annum (TPA) at its Damanjodi facility, taking the total capacity to 5.1 million tonnes annually.
“We are adopting a strategy to maintain surplus alumina, which can be sold in domestic or international markets,” Singh explained. He also noted that while US tariffs on aluminium have had minimal impact on NALCO, the company is now exploring new markets like the UK and prioritizing value-added products to buffer global trade shocks.
₹30,000 Cr Smelter and Power Plant Planned at Angul
The second phase of NALCO’s investment drive is its largest — a ₹30,000 crore outlay for establishing a 0.5 million tonne aluminium smelter and a 1,080 MW captive coal-based power plant at Angul. The smelter will cost around ₹18,000 crore and the power plant ₹12,000 crore.
“To secure coal supply, we are considering a joint venture with companies like Coal India, NTPC, or Singareni Collieries. A consultant is already preparing the Detailed Project Report,” Singh added. The project is targeted for commissioning by 2030.
Raw Material Security: Coal and Bauxite Sourcing
Cost efficiency is central to NALCO’s strategy. By sourcing coal from its own mines, the company has already reduced production costs by ₹200–300 per tonne. With a current coal mining capacity of 4.4 million tonnes, NALCO aims to acquire additional mines to sustain its captive power plants.
On the bauxite front, the company plans to start operations at the Pottangi mines by Q4 of FY2025–26, further enhancing its raw material self-sufficiency.
Three-Phase Growth Plan to 2030
The PSU’s growth journey is being pursued through a three-phase strategy–
- Short-term (ongoing): Maximize capacity utilization, improve efficiencies, and cut production costs.
- Mid-term (2–3 years): Expand into value-added aluminium products, integrate green energy, and adopt Industry 4.0 practices.
- Long-term (by 2030): Complete brownfield expansions to elevate turnover and achieve Maharatna status.
“All our current units are already running at more than 100% of rated capacity. We’re now focusing on operational excellence and green transformation,” Mr Singh emphasized.
Challenges and Outlook
While NALCO’s expansion plan positions it strongly on the path to Maharatna status, industry analysts note that its dependence on coal-based power could become a long-term liability amid the global shift towards low-carbon aluminium. Rivals like Hindalco and Vedanta are also ramping up capacities with a stronger tilt toward renewable energy.
NALCO’s push to reduce costs and increase capacity is critical, but achieving global competitiveness will eventually require deeper investments in clean energy, R&D, and product diversification.
About NALCO
National Aluminium Company Limited (NALCO), a Navratna CPSE under the Ministry of Mines, is one of the largest integrated aluminium producers in India. With a strong focus on sustainability and renewable energy adoption, NALCO continues to align its operations with India’s clean energy transition and long-term environmental goals.
