NALCO's ₹30,000-Crore Expansion Halted After Rio Tinto Canada Deal Collapse.

State-owned National Aluminium Company Ltd. (NALCO) is re-evaluating its ambitious ₹30,000-crore expansion plans, pushing back the project by approximately one year. This significant delay stems from the collapse of critical technology partnership discussions with Rio Tinto Canada and stalled negotiations with NTPC for a captive power supply, key components for the envisioned growth.

Sources close to the development indicate that Rio Tinto Canada's reluctance to share its proprietary smelter technology has necessitated a complete rework of NALCO's Detailed Project Report (DPR). In response to these challenges, NALCO has also revised its projected power requirement downwards, from an initial 1,200 MW to 1,080 MW.

The extensive capital expenditure (capex) program was originally designed to establish a new 0.5 million tonnes per annum (mtpa) aluminium smelter, complete with associated captive power plants. The commissioning of this substantial expansion was initially anticipated by the fiscal year 2030 (FY30). However, NALCO's Chairman and Managing Director, Brijendra Pratap Singh, recently informed investors during a call that the significant capex outflow for this project is now expected to commence from fiscal year 2027-28 onwards. This marks a notable shift in the company's investment timeline and strategic rollout.