State-owned National Aluminium Company (NALCO) plans to invest Rs 28,000-30,000 crore over the next three to four years to build a new 0.5 million tonne aluminium smelter and a 1,000 MW captive power plant. The company aims to complete both projects by 2030 or 2031. The smelter will cost around Rs 17,000 crore and the power plant around Rs 10,000 crore. NALCO is targeting 30% green power by 2030 to reduce carbon emissions, as power generation is the largest contributor to emissions in aluminium production. The company currently has 198 MW of wind and 1 MW of solar capacity, and is adding more renewable sources. However, moving entirely to round-the-clock green power is challenging due to cost differences, with green power at Rs 5.5-6 per unit versus existing power costs of Rs 3.15 per unit. The investment comes as India's aluminium consumption is projected to rise from 6.2-6.3 million tonnes to 8 million tonnes by 2030. NALCO is also expanding its alumina refinery capacity and developing new bauxite mines to support the expanded production.
