Aluminium is the youngest member of the metal family. Yet, it has surpassed all other metals in applications and growth. In the 19th century, aluminium was treated as “Precious Metal”. It is said that at a dinner hosted by Napoleon III, the Guest of Honour ate with cutlery made of aluminium, while others had to make do with gold! As another story goes, in the year 1940, the British Government appealed to the public to surrender their pots and pans to help overcome the severe shortage in aluminium. In 1990, there were only five aluminium plants with a combined production of 7800 tonnes. Today, the world produces around 30 million tonnes of aluminium from 200 smelters, spread across 44 countries all over the globe. In addition, about 10 million tonnes of secondary aluminium comes through the recycling route. 

In India, aluminium production started in a very small scale before the Second World War. But the real growth of the industry came in the ’60s and ’70s, when three major producers viz. lndal and Hindalco in private sector and Balco in public sector started production; but, there was not much scope for the growth of the aluminium industry, as the bauxite resources available in the ’70s were limited, and the industry had to suffer shortages. India’s aluminium production presented a picture of stagnation. Starting with a 2500-tonne Smelter in 1943, the industry took three decades to reach a capacity of 2.5 lakh tonnes. However, it was the discovery of vast bauxite deposits in the East Coast in the ‘80s, estimated at 1000 million tonnes, that raised hopes for the aluminium industry as the Govt. of India decided to set up a large aluminium complex in Orissa in the shape of National Aluminium Company Limited (NALCO).

Turning Point

            The entry of NALCO marked a turning point in the history of aluminium industry in India. The country witnessed a quantum jump of 40% in the aluminium production capacity. The state-of-the-art technology that came with NALCO promised to revolutionise aluminium-making in the country.

The task of implementing the sprawling NALCO projects was enormous. Given the time frame for construction and commissioning the units, with their multi-locations and multi-disciplines like mining, chemical engineering, metallurgy and power generation, it required a high degree of planning and systematic monitoring. At the time of formulation of the  project, some of the best brains from within the aluminium industry were given the task to prepare a blue print for the growth of the industry. The project was to primarily meet the domestic needs of aluminium for 4-5 decades.

Technology Gamble    

The founding fathers of NALCO decided to take the risk of picking up the latest 180 KA technology, literally from the drawing board of Aluminium Pechiney of France. On the face of it, it looked like a gamble. But it was a gamble that has paid off well. The technology is comparable with the scale of operation chosen by the company in consultation with Aluminium Pechiney. The outstanding feature of NALCO Smelter is adoption of high current, low energy (13550 KWH/tonne of metal) conserving reduction cells (known as pots). Other important features are : Dry gas scrubbing system for fluoride recovery, computer controlled multi-purpose cranes which work like robots, dross recovery system, high capacity furnace etc.  

Today, NALCO has emerged as India’s largest manufacturer and exporter of alumina and aluminium. During its 25 years of existence, the company has established new landmarks in productivity and profitability. In the year 2005-06, the company earned Rs. 2306 crores from exports while its net profit amounted to Rs. 1562 crores. The company is now gearing up to meet the challenges of expansion and growth in coming years.

International Rating

            NALCO is the first public sector company in the country to venture into international market in a big way. In fact, exports are at the center of NALCO’s commercial operations, which account for almost 50 per cent of the company’s sales turnover. The project itself has been designed to sell almost half of its alumina production in international market.

            NALCO metal has since received London Metal Exchange rating for high purity. Its alumina also enjoys premium in the world market on account of excellent quality and international standard bulk shipment facilities of the company at Visakhapatnam.

            Because of the consistent export performance, the Government of India has accorded ‘Super Star Trading House’ status to NALCO, the first company in the Public Sector to earn this distinction. Since 50% of NALCO’s production is earmarked for overseas market, the company will continue to be a major player in the international market.           

Expansion

            NALCO has already completed the 1st phase capacity expansion at an investment of Rs.3700 crore, raising the bauxite mines capacity to 48 lakh tonnes, alumina capacity to 15.75 lakh tonnes, aluminium capacity to 3.45 lakh tonnes and power generation capacity to 960 MW. 

Now, the company is busy in implementing the 2nd phase expansion, which will further increase the bauxite mines capacity to 63 lakh tonnes, alumina capacity to 21 lakh tonnes, aluminium capacity to 4.6 lakh tonnes and power generation capacity to 1200 MW. With the completion of these projects, NALCO’s Aluminium Smelter will be one of the largest in the industry and Alumina Refinery will be the 6th largest in the world.

Social Responsibilities

            NALCO has come to represent a better quality of life for communities residing in the vicinity of its plants and facilities. The company has comprehensively addressed the problems of rehabilitation of displaced families with adequate compensation, housing and employment to the extent feasible.   

Subsequently, NALCO has been allocating 1% of its net profit of the preceding year for social sector activities of the succeeding year. The company also provides additional funds from time to time, with special approval of the Board.

Creation of infrastructure in the surrounding villages for communication, education, health care and drinking water gets priority in the periphery development plans of the company. Community participation in innovative farming, pisciculture, social forestry and sanitation programmes apart, encouragement to sports, art, culture and literature are all a part of NALCO’s deep involvement with the life of the community. Successful operations of the company have led to employment and income generation for the local people in many significant ways.