Archive · 29 Sep 2026
NALCO Considers 0.5-Million-Tonne Andhra Pradesh Smelter
NALCO is thinking about building a large aluminium factory in Andhra Pradesh.
The factory could make 0.5 million tonnes of aluminium each year.
NALCO’s alumina production is expected to increase by FY28.
Alumina is a material used to make aluminium.
The company wants to turn all of its alumina into aluminium instead of exporting some of it.
NALCO has not yet found or finalized the land for the project.
The project would cost much more than NALCO’s already announced spending plan.
NALCO is also studying special aluminium products for industries such as aerospace.
State-owned NALCO is considering a 0.5-million-tonne-per-year aluminium smelter in Andhra Pradesh.
The proposed project would help NALCO use its expanded 3.1-million-tonne alumina capacity for aluminium production instead of exports.
NALCO’s alumina capacity is expected to rise from 2.1 million tonnes to 3.1 million tonnes per year by FY28.
The company is targeting total aluminium capacity of about 1.5 million tonnes per year.
The Andhra Pradesh project could require about Rs 18,000 crore for the smelter and Rs 11,000 crore for 1,000 MW of power.
- Who
- State-owned National Aluminium Company Limited (NALCO), led by CMD B P Singh.
- What
- NALCO is contemplating a 0.5-million-tonne-per-year aluminium smelter in Andhra Pradesh.
- When
- The proposal was reported on September 29; NALCO’s expanded alumina capacity is expected by FY28.
- Where
- Andhra Pradesh, India; NALCO also has an existing smelter and planned expansion at Angul in Odisha.
- Why
- To convert NALCO’s expanded alumina capacity into value-added aluminium and avoid exporting alumina after the expansion.
- Proposed smelter capacity
- 0.5 million tonnes of aluminium per year
- Current alumina capacity
- 2.1 million tonnes per year
- Expected alumina capacity
- 3.1 million tonnes per year after the new refinery is commissioned by FY28
- Current aluminium smelter capacity
- 0.46 million tonnes per year
- Target aluminium capacity
- About 1.5 million tonnes per year
- Estimated smelter investment
- About Rs 18,000 crore
- Estimated power requirement and cost
- 1,000 MW, costing about Rs 11,000 crore
