NALCO Considers 0.5 Million Tonne Smelter in Andhra Pradesh
National Aluminium Company (NALCO) is contemplating a new aluminium smelter with a capacity of 0.5 million tonnes in Andhra Pradesh, according to a report published by ThePrint on 29 September 2026. No value, timeline, or specific site within the state has been disclosed in available reporting.
NALCO is a central public sector enterprise under the Ministry of Mines. The proposed facility, if taken forward, would represent a greenfield smelting addition in a state that does not currently feature among the leading locations in Projects India's tracked aluminium, copper and zinc project pipeline.
| Detail | Information |
|---|---|
| Project | New Aluminium Smelter |
| Promoter | National Aluminium Company (NALCO) |
| Proposed Location | Andhra Pradesh |
| Proposed Capacity | 0.5 million tonnes per annum |
| Declared Value | Not disclosed |
| Stage | Under contemplation |
NALCO's Broader Project Activity
Projects India tracks several other capital investments associated with NALCO across India. These include a caustic soda project at Dahej, Bharuch, Gujarat valued at Rs 3,000 crore, a nuclear-based power unit project at Kakrapara, Surat, Gujarat valued at Rs 12,600 crore, and specialty chemicals projects in Hooghly, West Bengal. The Andhra Pradesh smelter, if confirmed, would be distinct from these existing tracked initiatives.
Aluminium Sector Project Pipeline Across India
The proposed Andhra Pradesh smelter would enter a crowded national pipeline. Projects India currently tracks 45 live projects in the aluminium, copper, zinc and related metals sub-sector, with five added in the last 90 days. Odisha dominates the geographic spread with 12 tracked projects, followed by Karnataka with 6, Gujarat and Maharashtra with 5 each, and Uttar Pradesh and Rajasthan with 4 each.
By development stage, 14 of the 45 tracked projects are at the construction-started phase, making this the largest active cohort. Twelve projects are under approvals, four have received approvals, four are nearly complete, four are completed, and three have been cancelled.
Notable projects already under approvals in the sector include Vedanta Limited's aluminium smelter plant at Kamakhyanagar, Dhenkanal, Odisha, valued at Rs 1,28,000 crore, and Vedanta's alumina refinery at Rayagada, Odisha, valued at Rs 50,537 crore. Aditya Birla Group's alumina refinery at Rayagada is also under approvals at Rs 8,000 crore. These projects underscore the scale of investment already moving through the approvals pipeline before the NALCO smelter has formally advanced.
Andhra Pradesh as an Emerging Location
Andhra Pradesh does not appear among the top six states by project count in Projects India's current aluminium sub-sector tracking. Should NALCO's proposed smelter progress to formal approval or investment decision, it would place Andhra Pradesh on the map for aluminium smelting investment alongside the more established hubs of Odisha, Karnataka and Gujarat. Suppliers and contractors already active in those states may wish to monitor developments in Andhra Pradesh as the project matures.
What this means for suppliers and contractors
At 0.5 million tonnes of capacity, a new greenfield aluminium smelter is a capital-intensive undertaking requiring a broad range of inputs: civil and structural works, electrical and instrumentation systems, refractory materials, pot-lining technology, power infrastructure, and materials-handling equipment. However, because the project is at the contemplation stage with no disclosed value, site, or timeline, procurement activity is not imminent.
Suppliers and equipment makers should note that the heavier near-term opportunity in this sub-sector lies with the 12 projects currently under approvals and the 14 already at construction stage, spread across Odisha, Karnataka, Gujarat and Maharashtra. Those projects represent active or approaching procurement windows. The industrial projects sector overview on Projects India and the full tracked-projects database allow suppliers to monitor stage changes as the NALCO smelter and other projects advance. There are currently no open India tenders in the industrial projects sector recorded in Projects India's system.
Frequently asked questions
What is the capacity of the NALCO aluminium smelter planned for Andhra Pradesh?
NALCO is contemplating a new aluminium smelter with a capacity of 0.5 million tonnes in Andhra Pradesh, as reported by ThePrint on 29 September 2026. No project value or specific site within the state has been publicly disclosed.
What stage is the NALCO Andhra Pradesh smelter project at?
The project is at the contemplation stage. NALCO has not publicly announced a formal investment decision, approved site, project cost, or construction timeline based on available reporting as of 29 September 2026.
How many aluminium sector projects are tracked in India currently?
Projects India tracks 45 live projects in the aluminium, copper, zinc and related metals sub-sector across India, with five added in the last 90 days. Odisha leads with 12 projects, followed by Karnataka with six.
