NITI Aayog Roadmap for Aluminum Sector Decarbonisation: Transitioning India’s Industrial Backbone
SDG 7: Affordable and Clean Energy | SDG 9: Industry, Innovation and Infrastructure | SDG 13: Climate Action
NITI Aayog | Ministry of Mines | Ministry of Power | Department of Atomic Energy
The NITI Aayog report titled ‘Roadmap for Aluminium Sector Decarbonisation’ outlines strategies for reducing greenhouse gas (GHG) emissions in India’s aluminium industry, which is a significant contributor to the country’s economy and industrial growth but also one of the most energy-intensive and carbon-emitting sectors.
India currently stands as the world’s second-largest producer of primary aluminum, with domestic production projected to grow nearly tenfold—from 4 million tonnes in 2023 to 37 million tonnes by 2070. However, the sector is one of the most carbon-intensive in the country, with an emission intensity of 20 to 21 tCO2 per tonne of aluminum produced, significantly higher than the global average of 15 tCO2 per tonne. This high intensity is primarily due to the industry’s heavy reliance on coal-based Captive Power Plants (CPPs), which account for 76% of the sector’s total greenhouse gas emissions.
Three-Phase Transformative Solutions
The roadmap outlines a structured, phased approach to achieving net-zero emissions through three primary technological levers:
Short-term (Till 2030) – RE-RTC Power: The immediate priority is transitioning to Renewable Energy Round-the-Clock (RE-RTC) power. Key measures include dual connectivity to central and state grids (CTU-STU) and converting existing coal-based CPPs into Independent Power Producers (IPPs) to allow for a more flexible, cleaner energy mix.
Medium-term (2030–2040) – Nuclear Energy: The roadmap advocates for the adoption of Small Modular Reactors (SMRs) and Bharat Small Reactors (BSRs). The SHANTI Act, 2025 is a critical enabler, allowing private sector participation in building and operating nuclear facilities through group captive models.
Long-term (2040 & Beyond) – CCUS: For remaining coal-based assets, the long-term solution is retrofitting with Carbon Capture, Utilisation, and Storage (CCUS) technologies to address hard-to-abate process and combustion emissions.
Regulatory and Institutional Architecture
Effective decarbonisation requires coordinated action across multiple government agencies and the development of new infrastructure.
Infrastructure Upgrades: The roadmap suggests creating exclusive green power grids for aluminum production and developing a national infrastructure for CO2 transport and storage.
Regulatory Reform: Reforms are needed for land boundary regulations for industrial nuclear plants, alongside an inter-agency mechanism involving the Ministry of Power, MNRE, and the DAE to oversee the transition.
Sectoral Alignment: Aluminum sector needs must be aligned with national energy transition platforms, such as the National Green Hydrogen Mission.
What is the “dual CTU-STU connectivity” recommended for the aluminum sector? Dual connectivity refers to allowing industrial units to be simultaneously linked to both the Central Transmission Utility (CTU) and the State Transmission Utility (STU). For aluminum smelters, which require uninterrupted 24/7 power to prevent pot-line freezing, this provides the necessary redundancy to transition away from dedicated coal-based captive plants toward a mix of renewable energy and grid power without risking operational stability.
Policy Relevance
Decarbonising aluminum is vital for India’s Viksit Bharat 2047 vision, ensuring that a “backbone” industrial sector remains globally competitive and environmentally sustainable.
Strategic Autonomy: Transitioning to Nuclear and RE-RTC reduces the sector’s long-term vulnerability to volatile global coal prices and domestic supply constraints.
Global Trade Resilience: Lowering carbon intensity is essential for Indian aluminum to bypass emerging non-tariff barriers like the EU’s Carbon Border Adjustment Mechanism (CBAM).
Energy Transition Leadership: The roadmap positions India as a pioneer in industrial-scale SMR deployment, creating a template for other hard-to-abate sectors like steel and chemicals.
Follow the full report here: Roadmap for Aluminium Sector Decarbonisation