National Aluminium Company to invest INR 30,000 crore for expansion and diversification: Pralhad Joshi

On Thursday, January 7, Pralhad Joshi, Union Minister of Coal & Mines and Parliamentary Affairs, affirmed that National Aluminium Company Ltd (NALCO) would invest INR 30,000 crore for expansion and diversification in the next six to seven years.

Joshi, while addressing the 41st Foundation Day event of NALCO in Bhubaneswar, also said that the company’s expansion plan would have a multiplier effect on the mining and mineral sector, helping achieve the vision of Atmanirbhar Bharat.

Joshi added that some of NALCO’s expansion and diversification plans could come in the form of joint ventures. Plans are on board to announce some greenfield projects, for which consultations are on with the State government, said Joshi.

The Minister also said that NALCO almost tripled its production in FY21 and emerged as a key global player in the entire value chain of aluminium manufacture. When the demand for aluminium was subdued, with prices hovering around $1,400-1,500 per tonne, NALCO achieved profit in both the first and second quarter of the year.

Joshi expects NALCO’s financial performance to enhance more in the third quarter and by the year-end to regain its pre-eminent position of being the industry leader after facing challenges from the COVID-19.

The Minister underscored the need to increase per capita consumption of aluminium in India, stating that the Indian level of 2.8 kilogram was much lower than the global average of 12 kilogram.

“This is the right time for industry to increase capacity and leverage this opportunity. We also need to ramp up the recycling capacity,” he added.

To conclude, Joshi mentioned two significant steps by the government for the aluminium sector. One was the non-ferrous metal import monitoring system for aluminium and copper, and the other was the metal recycling framework to address issues around aluminium scrap recycling. Metal import monitoring system would assist the aluminium industry in planning pricing and production strategy by providing advance and accurate information on the quality of material being imported, said Joshi.