 "Nalco to invest ₹30K crore in smelter and coal power plant, says CMD")
National Aluminium Company (Nalco) plans to invest ₹30,000 crore in setting up a new aluminium smelter and an associated coal-based power plant over the next five years, Chairman and Managing Director Brijendra Pratap Singh said on August 28.
The state-run aluminium producer will allocate about ₹18,000 crore for establishing the proposed smelter in Odisha, Singh added.
He noted that the project would be financed through a mix of debt and internal resources. Another ₹12,000 crore has been earmarked for building a coal-based power plant, for which the company is currently in discussions with Coal India and NTPC.
As part of its growth strategy, Nalco is also looking to acquire new bauxite and coal mines to strengthen raw material security. Additionally, the company is exploring opportunities to bid for critical mineral mines in India.
Tariff challenges
Nalco highlighted that the availability of alumina in the Indian market has risen following the imposition of additional US tariffs, creating pressure in the domestic market due to surplus supplies.
In June 2025, US President Donald Trump raised import duties on aluminium, doubling tariffs from 25 per cent to 50 per cent on most categories, while keeping certain specific categories at 25 per cent. ALSO READ: Delhi Court convicts former Nalco CMD Srivastava for money laundering
Critical mineral expansion
Further, Nalco is eyeing equity participation in lithium assets in Australia through Khanij Bidesh India Ltd (KABIL), a joint venture of public sector companies tasked with securing critical mineral resources abroad.
KABIL was set up in 2019 by three state-run firms — National Aluminium Company (Nalco), Hindustan Copper Ltd, and Mineral Exploration Corporation Ltd (MECL) — under the Ministry of Mines.
With Nalco holding 40 per cent equity, and Hindustan Copper and MECL 30 per cent each, KABIL’s mandate is to identify, acquire, and develop critical and strategic minerals such as lithium, cobalt, and others from overseas sources to secure India’s long-term supply chain needs.
The company has already obtained exploration rights for lithium blocks in Argentina and signed agreements with Australia to jointly evaluate projects.