National Aluminium Company Ltd (Nalco) is making significant strides in its smelter expansion plans, with discussions on joint ventures for power requirements and technology partnerships progressing steadily. However, the company has clarified that its ₹300 billion capital expenditure plan remains on schedule despite the stalled technology partnership with Rio Tinto Canada.
Key Highlights Of Nalco’s Expansion Strategy
- Nalco is actively exploring joint venture opportunities to secure power supply for its upcoming smelter expansion
- Discussions with technology partners are on track, with a focus on advanced smelting techniques and efficiency improvements
- The ₹300 billion capex plan for the brownfield smelter remains on schedule, reinforcing Nalco’s commitment to capacity expansion
- Revised power requirements have been set at 1,080 MW, down from the earlier estimate of 1,200 MW
- Nalco has clarified that the stalled Rio Tinto Canada tie-up will not impact its overall expansion timeline
Strategic Partnerships For Power Supply
Nalco is in discussions with potential partners to establish a joint venture for captive power generation, ensuring a stable and cost-effective energy supply for its smelter operations. The company is evaluating various options, including coal-based thermal power, renewable energy sources, and energy storage solutions.
Technology Collaboration And Smelter Efficiency
Following the collapse of talks with Rio Tinto Canada, Nalco is revisiting its technology strategy. The company is engaging with new partners to integrate advanced smelting technologies that enhance efficiency and reduce environmental impact. Engineers India Ltd has been tasked with preparing a revised Detailed Project Report to align with the updated expansion framework.
Capex Execution And Future Outlook
Nalco’s ₹300 billion capex plan is structured to support long-term growth, with major investments expected to commence from FY27-28. The company aims to complete tendering within the next 12-18 months, followed by a commissioning timeline of 3-4 years. Despite the stalled Rio Tinto Canada partnership, Nalco has reaffirmed its commitment to executing the expansion as planned.
Sources: The Hindu Business Line, PSU Connect, Economic Times, MSN.
