NALCO’s Rs 30,000-Crore Smelter Expansion in Anugul Gains Pace, Production Capacity to Nearly Double

Bhubaneswar, Nov 5 (UDN): Odisha is set to witness a major boost to its aluminium industry as the National Aluminium Company Limited (NALCO) moves ahead with its ambitious ₹30,000-crore brownfield smelter expansion project at Anugul.

NALCO’s Rs 30,000-Crore Smelter Expansion in Anugul Gains Pace, Production Capacity to Nearly Double

 Representational Image 

The proposed project aims to increase the company’s aluminium smelting capacity by 0.5 million tonnes per annum (MTPA), taking its total production capacity from the existing 0.46 MTPA to approximately 1 million tonnes annually.

With key statutory approvals, technology partnerships and power infrastructure initiatives progressing, the mega project is gaining momentum and is targeted for commissioning during 2030-31.

Land Acquisition and Rehabilitation Process Underway

As part of the preparatory work, a meeting of the Rehabilitation and Peripheral Development Advisory Committee (RPDAC) was recently convened to address issues relating to land acquisition, compensation and rehabilitation of affected families.

The initiative is expected to facilitate the timely availability of land required for the proposed expansion and accelerate the project’s implementation.

Global Technology Partnership with UAE’s EGA

In a significant development, NALCO has entered into an agreement with Emirates Global Aluminium (EGA) for licensing its proprietary aluminium smelting technology for the proposed Anugul plant.

The partnership will enable NALCO to adopt globally proven and energy-efficient production processes, strengthening operational efficiency and supporting sustainable aluminium manufacturing.

1,080 MW Captive Power Plant Planned

Power availability will be a crucial requirement for the proposed expansion, which is expected to need an additional 1,100 MW of electricity.

To meet this demand, NALCO has partnered with NLC India Limited to establish a 50:50 joint venture company for setting up a 4 × 270 MW captive thermal power plant, with a total generation capacity of 1,080 MW.

Alongside conventional power generation, NALCO is also exploring the integration of 200–250 MW of renewable energy into the project’s overall power infrastructure as part of its commitment to cleaner and more sustainable energy.

Damanjodi Refinery Expansion to Support Growth

The Anugul smelter expansion is being pursued alongside NALCO’s ongoing 5th Stream Alumina Refinery Project at Damanjodi.

Once commissioned, the additional refinery capacity is expected to generate surplus alumina even after meeting the increased raw material requirements of the proposed Anugul smelter.

Initially, the surplus alumina is likely to be directed towards export markets. However, NALCO is also exploring opportunities to establish new aluminium production facilities within the country to maximise domestic value addition.

Another 0.5 MTPA Greenfield Smelter Under Consideration

In a further push towards expanding India’s aluminium manufacturing capabilities, NALCO is evaluating the possibility of establishing an additional 0.5 MTPA greenfield aluminium smelter at a suitable location in the country.

The proposed facility would help convert surplus alumina into finished aluminium products, strengthening domestic production and reducing dependence on imports.

NALCO’s Rs 30,000-Crore Smelter Expansion in Anugul Gains Pace, Production Capacity to Nearly Double

Boost to Employment and Odisha’s Industrial Growth

The proposed expansion projects are expected to create significant employment opportunities, strengthen industrial infrastructure and accelerate economic development in Odisha.

Being pursued with the support of the Odisha Government and the Union Ministry of Mines, these strategic investments are also aligned with the Centre’s flagship initiatives, including ‘Make in India’ and ‘Atmanirbhar Bharat’.

With the Anugul smelter expansion and Damanjodi refinery project progressing together, NALCO is positioning itself for a major expansion of its production capabilities while reinforcing India’s ambition to emerge as a stronger global player in the aluminium sector.

 

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