Nalco’s ₹30,000 crore smelter expansion in Anugul, Odisha, is moving ahead after administrative steps to accelerate land acquisition, power arrangements and technology deployment for the proposed plant. The brownfield project will add 0.5 million tonnes per annum (mtpa) of aluminium smelting capacity by 2030-31, taking the state-run producer’s total smelting capacity from 0.46 mtpa to around one million tonnes annually.
The proposed standalone plant will be located adjacent to Nalco’s existing aluminium complex in Anugul. The expansion is part of the company’s long-term plan to increase its presence in domestic and global aluminium markets, with the metal used in infrastructure, transportation, renewable energy and manufacturing.
Nalco has partnered with Emirates Global Aluminium (EGA) to license its proprietary smelting technology for the proposed facility. The company said the collaboration would support the use of established, energy-efficient smelting processes and provide the technology base for the new plant, which is targeted for commissioning in 2030-31.
Land acquisition has been one of the key issues affecting the project’s progress. Nalco requires approximately 267.21 acres for the expansion. It already has about 130 acres, while 137.21 acres remain to be alienated or acquired. This includes 54.67 acres of government land and 82.54 acres of private land.
A company executive said the land handover process is expected to accelerate after the administration convened a meeting of the Rehabilitation and Peripheral Development Advisory Committee. The committee is addressing issues related to compensation, rehabilitation and other matters associated with acquiring the land required for the expansion.
Power availability will also be central to commissioning and operating the expanded smelter. Nalco estimates that the project will require an additional 1,100 megawatts of power. To meet this requirement, it has partnered with NLC India to establish a 50:50 joint venture for a captive thermal power plant with four units of 270 MW each, providing a combined capacity of 1,080 MW. Nalco also plans to integrate 200-250 MW of renewable energy into the project ecosystem.
The company is simultaneously progressing with the fifth-stream alumina refinery project at Damanjodi. The refinery expansion is expected to strengthen the supply of alumina, the key raw material required for the additional smelting capacity. Nalco said the project could create surplus alumina even after supplying the expanded Anugul smelter, with the additional material initially directed towards export markets.
Nalco is also examining downstream investments in India to use the surplus alumina domestically. The company is evaluating a separate 0.5 mtpa greenfield aluminium smelter at a suitable location in the country. That project remains at the evaluation stage, with locations being examined across India.
Brijendra Pratap Singh, Nalco’s chairman and managing director, said the company remained committed to its expansion and capacity augmentation plans. He said the fifth-stream refinery expansion was at an advanced stage of commissioning and that groundwork for the Anugul brownfield smelter project was progressing steadily. The company’s stated commissioning target for the new smelting capacity is 2030-31.
