Can It Double Aluminium Smelting Capacity by FY31?
Rs.30,000 Crore Expansion Plan: NALCO Targets 1 MTPA Aluminium Capacity by FY31
This PSU Stock, engaged in bauxite mining, alumina refining, aluminium smelting, power generation, and manufacturing aluminium products for domestic and international markets, is in focus after announcing a Rs. 30,000 crore expansion plan. NALCO aims to increase its aluminium smelting capacity from 0.46 MTPA to approximately 1 MTPA by FY31 through its proposed Anugul smelter expansion, supported by strategic technology partnerships and additional power generation capacity.
With a market capitalization of Rs. 60,608.85 crore, the shares of National Aluminium Company Limited closed at Rs. 330 per equity share, down nearly 0.72 percent from its previous day’s closing price of Rs. 332.40 per equity share.
What is the News?
National Aluminium Company Limited (NALCO) is a Government of India-owned Navratna company engaged in the mining of bauxite, refining of alumina, smelting of aluminium, and generation of power. The company supplies aluminium and alumina to domestic and international markets. It is now expanding its production capacity through major refinery and smelter projects to strengthen its position in the aluminium industry.
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Major Smelter Capacity Expansion
National Aluminium Company Limited (NALCO) is progressing with its proposed brownfield smelter expansion project at Anugola, Odisha. The project will add 0.5 million tonnes per annum (MTPA) of aluminium production capacity, increasing its existing capacity from 0.46 MTPA to approximately 1 million tonnes annually.
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Investment and Government Approvals
The expansion project involves an approved investment of approximately Rs. 30,000 crore. Key statutory approvals, strategic partnerships, and supporting initiatives are already in place. The Rehabilitation and Peripheral Development Advisory Committee (RPDAC) has also held meetings to speed up land acquisition, compensation, and rehabilitation processes.
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Strategic Technology Partnership with EGA
NALCO has entered into an agreement with Emirates Global Aluminium (EGA) to use its advanced aluminium smelting technology at the proposed Anugola plant. This partnership will help NALCO adopt globally proven and energy-efficient production processes, supporting improved operational efficiency and higher aluminium production.
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Power Requirements and Renewable Energy
The proposed smelter expansion will require approximately 1,100 MW of additional power. NALCO has partnered with NLC India Limited to establish a 50:50 joint venture for developing a 1,080 MW captive thermal power plant. Additionally, the company plans to integrate 200–250 MW of renewable energy into the project.
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Project Timeline and Future Growth
The 0.5 MTPA smelter expansion project is targeted for commissioning during FY2030-31. Alongside this, NALCO is progressing with its fifth-stream alumina refinery project at Damanjodi. These expansion projects are expected to increase production capacity, generate employment and support industrial development in Odisha.
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Plans for Additional Greenfield Smelter
After meeting the requirements of its expanded smelter, NALCO expects surplus alumina from its refinery, which can initially be exported. The company is also exploring locations for a new 0.5 MTPA greenfield aluminium smelter in India to increase domestic production and strengthen the country’s aluminium manufacturing capabilities.
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Existing Production Capacity
National Aluminium Company Limited (NALCO) has a strong integrated aluminium production capacity across its operations. The company has a bauxite mining capacity of 6.825 million tonnes per annum (MTPA) and an alumina refinery capacity of 2.1 MTPA. Its aluminium smelter has a production capacity of 0.46 MTPA, manufacturing standard ingots, T-ingots, billets, wire rods and rolled products.
Additionally, NALCO operates a 1,200 MW captive power plant (CPP), supported by coal linkages of 4 MTPA. The company also has dedicated port facilities for handling alumina, caustic soda, and ship loading, along with 198 MW of wind power capacity. These facilities support its integrated operations, production efficiency, and energy requirements.
Business Highlights – Major Projects
NALCO is expanding its raw material and alumina production capabilities through the Potangi Bauxite Mines project in Odisha, which has estimated reserves of 111 million tonnes and a proposed capacity of 3.5 MTPA. The company has appointed a Mine Developer and Operator (MDO). Additionally, its fifth-stream alumina refinery at Damanjodi has a capacity of 1 MTPA, with pre-commissioning activities starting in June 2026.
The company is also progressing with a 0.5 MTPA brownfield aluminium smelter expansion at Angul. It has signed technology agreements with EGA, while a 1,080 MW captive power plant is planned through a joint venture with NLC India Limited.
Additionally, NALCO plans a 0.5 MTPA greenfield smelter at Mulepeta, Andhra Pradesh, subject to land availability. It is also expanding aluminium value-added products through alloy and foil manufacturing projects, supporting future growth and domestic production.
Company Overview
National Aluminium Company Limited (NALCO) is a Government of India-owned Navratna public sector enterprise established in 1981 and headquartered in Bhubaneswar, Odisha. The company is engaged in bauxite mining, alumina refining, aluminium smelting, and power generation. It operates an integrated aluminium manufacturing business with facilities across Odisha. Its major products include alumina, aluminium ingots, billets, wire rods and rolled products.
Recent Quarter Results
Looking at the company’s financial highlights, National Aluminium Company Limited’s revenue has increased from Rs. 4,292 crore in Q2 FY26 to Rs. 5,419 crore in Q2 FY27, which has grown by 26.26 percent. The net profit has also grown by 28.32 percent from Rs. 1,430 crore in Q2 FY26 to Rs. 1,835 crore in Q2 FY27. National Aluminium Company Limited’s revenue and net profit have grown at a CAGR of 15 percent and 35 percent, respectively, over the last five years.
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In terms of return ratios, the company’s ROCE and ROE stand at 39.6 percent and 29.4 percent, respectively. National Aluminium Company Limited has an earnings per share (EPS) of Rs. 39, and it is a debt-free company.
