A proposed high-end aluminium alloy project in Andhra Pradesh, jointly developed by National Aluminium Company Ltd (Nalco) and defence PSU Mishra Dhatu Nigam Ltd (MIDHANI), has been found commercially unviable, according to Nalco’s 2024-25 annual report.

The project, with an intended capacity of 60,000 tonnes per annum, was aimed at supplying defence, aerospace, and automotive sectors to reduce import dependence and promote Make in India. However, a market survey highlighted insufficient demand, low per capita aluminium consumption in India, and limited aluminium localisation in strategic sectors as key constraints.

Utkarsha Aluminium Dhatu Nigam Ltd, the 50:50 joint venture established in August 2019, had acquired 110 acres in Nellore for the facility and planned flat-rolled products with scope to diversify in the future. Administrative ministries for mines and defence have reviewed the project and will finalise the closure process.

MIDHANI, under the Defence Ministry, already possesses integrated facilities for super alloys, titanium, titanium alloys, and special steels, and has previously collaborated with ISRO to develop aluminium-lithium alloys for space applications. Earlier, consultants had been invited for engineering, procurement, and construction management services, including selection of a technology provider.

Nalco operates a 0.46 million tonnes per annum aluminium smelter, a 1,200 MW captive power plant, and four million tonnes per annum Utkal D&E coal mines in Angul, Odisha, under the Mines Ministry.