NALCO reveals detailed plan for its INR 30,000 crore expansion plans — following five years deemed crucial

NALCO’s announcement of INR 30,000 crore (USD 3.45 billion) investment in aluminium business expansion brought to the public by Union Minister of Coal & Mines and Parliamentary Affairs, Pralhad Joshi, is its first major capex in recent times, including setting up an INR 17,000 crore (USD 1.95 billion) aluminium smelter capacity.

State-owned Navratna PSU, National Aluminium Company (NALCO), has chalked out a distribution plan for its progressive INR 30,000-crore expansion plan, marking its first massive capital expenditure in contemporary times. The development project is set to conclude by FY30, with an INR 17,000-crore investment in an additional aluminium smelter construction and noteworthy projects in mining and downstream product manufacturing. Global mining leader Rio Tinto Canada has officially joined as a technology partner for this groundbreaking initiative.

To finance the large-scale capex, NALCO, a debt-free CPSE, will need to raise funds, targeting a debt-equity ratio of 70:30, according to sources. Additionally, INR 13,000 crore (USD 1.497 billion) will be allocated for a joint venture with NTPC to secure 1,200 MW of captive power, with 25-30 per cent coming from renewable energy sources.

Chairman and Managing Director Brijendra Pratap Singh has made a declaration that the plans have obtained the essential approvals, and Engineers India Ltd (EIL) is devising the framework. The smelter, which will have a anticipated capacity of 0.5 million tonnes per annum (mtpa), is envisioned to operate from FY30. Opening investments will start in FY27, with prime expenditure strategised between FY28 and FY30.

For power needs, NALCO is in discussions with NTPC concerning funding assistance for the INR 13,000-crore power plant, with potential modifications in financial figures. In the interim, the company is considering adding casting plants for aluminium production.