National Aluminium Company Limited (NALCO) has announced a groundbreaking investment of ₹300 billion (~$3.43 billion) in constructing a new aluminium smelter and a coal-based power plant in Odisha. This move is in line with India’s industrial expansion efforts.
Investment Breakdown and Project Timeline
- ₹180 billion allocated for an aluminium smelter in Odisha
- ₹120 billion earmarked for a coal-fired power plant
- Total investment: ₹300 billion (~$3.43 billion)
- Project funding: Debt + Internal accruals
Strategic Partnerships in Energy
To facilitate the power plant project, NALCO is collaborating with Coal India and NTPC, key players in India’s energy sector. This partnership aims to ensure a reliable electricity supply to support high-energy smelting operations, crucial for aluminium production efficiency.
Significance of the Odisha Smelter
- Expands NALCO’s production capacity significantly
- Supports the ‘Make in India’ initiative by boosting domestic output
- Generates thousands of direct and indirect jobs
- Strengthens India’s position in the global aluminium market
Key Takeaways for Competitive Exams:
- NALCO invests ₹300 billion in a new aluminium smelter and coal power plant in Odisha.
- Project funding sourced from a mix of debt and internal accruals over five years.
- Strategic partnerships with Coal India and NTPC for the power plant project.
- Focus on boosting domestic aluminium production and reducing import dependence in India.
