NALCO Plans 0.5 MTPA Aluminium Smelter in Andhra Pradesh

NALCO is considering setting up a new 0.5 million tonne per annum (MTPA) aluminium smelter in Andhra Pradesh as part of its plan to convert its expanding alumina production into higher-value aluminium. The proposed project is aimed at helping the state-owned company utilise its entire expanded alumina capacity rather than exporting surplus alumina.

NALCO’s alumina production capacity currently stands at 2.1 MTPA and is expected to increase to 3.1 MTPA by FY28 after the commissioning of its new refinery expansion. The company currently exports around 0.13 million tonnes of alumina, but it now wants to process more of its alumina into aluminium.

NALCO CMD B P Singh said the company is in discussions with the Andhra Pradesh government over the proposed project. However, land has not yet been finalised, and the project will be formally announced once a suitable site is identified.

With the additional smelter, NALCO expects to use its entire expanded alumina capacity for aluminium production. The company is targeting an overall aluminium production capacity of around 1.5 MTPA. Its existing smelter capacity is about 0.46 MTPA.

The proposed Andhra Pradesh project would come alongside NALCO’s expansion plans in Odisha. In September 2026, the company signed a technology licensing agreement with Emirates Global Aluminium (EGA) to use its DX+ Ultra technology for a 0.5 MTPA brownfield smelter expansion at Angul.

NALCO has announced a ₹25,000 crore capital expenditure plan through 2031, with the Andhra Pradesh project expected to be additional to this investment. A 0.5 MTPA smelter is estimated to require around ₹18,000 crore, while providing about 1,000 MW of power could involve another ₹11,000 crore.

The company has also engaged a consultant to develop a product strategy targeting aerospace and other specialised applications, indicating its broader focus on value-added aluminium products.