NALCO Expands Mining, Smelter Capacity and Renewable Energy Push in Odisha

Bhubaneswar: State-run National Aluminium Company Ltd (NALCO) is accelerating its expansion and sustainability plans in Odisha, with a strong focus on securing raw materials and shifting towards cleaner energy to support its long-term growth.

The public sector aluminium major is developing the Pottangi bauxite mines in Koraput district, with mining lease deeds already signed. Mining operations are expected to begin soon, ensuring a steady supply of bauxite for the company’s alumina and aluminium production.

NALCO has also commenced coal mining from the Utkal D and E blocks. This move is aimed at reducing input costs and strengthening fuel security for its operations. At the same time, the company is undertaking a brownfield expansion of its smelter, adding an additional capacity of 0.5 million tonnes per annum to reinforce its core aluminium manufacturing capabilities.

As part of its sustainability roadmap, NALCO plans to install 200–300 MW of renewable energy capacity in Odisha, supported by battery storage systems. The green power generated will be used to meet the high energy demands of its smelting operations.

Chairman-cum-Managing Director Brijendra Pratap Singh said nearly 80 per cent of the company’s carbon emissions currently come from coal-based captive power plants, making the transition to renewable energy a key priority.

He noted that power accounts for around 35–40 per cent of aluminium production costs. While coal-based power costs about ₹3 to ₹3.5 per unit, renewable energy currently costs between ₹4.5 and ₹5 per unit. To manage this gap, NALCO is exploring power purchase agreements, developing its own renewable energy assets and working with consultants to secure reliable and affordable round-the-clock green power.

The company aims to balance cost efficiency with sustainability as it moves towards producing greener aluminium and aligning its operations with long-term environmental goals.