High-End Aluminium Alloy Project Deemed Commercially Unviable

A joint project by Nalco and Mishra Dhatu Nigam Ltd in Andhra Pradesh aimed at producing high-grade aluminium alloys has been deemed commercially unviable, a recent report revealed. The project, projected to have a capacity of 60,000 tonnes per annum, could not generate sufficient demand in the Indian market.

The initiative, named Utkarsha Aluminium Dhatu Nigam Ltd, sought to bolster the defense, aerospace, and automotive sectors by establishing a domestic supply chain, thereby reducing import dependency. However, inadequate domestic demand and low aluminium localisation in key industries have thwarted its viability.

Ministry reviews and market surveys have led to discussions about closing the project. The facilities at MIDHANI, a Defence Ministry PSU, remain focused on producing strategic materials. The closure decision reflects larger market challenges despite earlier collaborations seeding strategic alloy advancements like the aluminium-lithium alloy for space with ISRO.