NALCO and NLCIL Forge Joint Venture for 1,080 MW Thermal Captive Power Plant in Odisha
National Aluminium Company Limited (NALCO) has partnered with NLC India Limited (NLCIL) through a newly established Joint Venture Company (JVC). A Joint Venture Agreement was signed on July 8, 2026, to develop a large-scale thermal captive power plant at Angul, Odisha.The project aims to address the dedicated energy needs of NALCO’s 0.5 MTPA Aluminium Smelter Expansion Project. The JVC is set up for the development of a 4x270 MW (1,080 MW) Thermal Captive Power Plant. Beyond serving the captive power requirement, the venture also involves exploring long-term arrangements for renewable energy (RE-RTC) and continuous coal supply in the region.
The agreement details a strategic partnership between the two companies, both of which are Government Enterprises. NALCO is under the administrative control of the Ministry of Mines, while NLCIL operates under the Ministry of Coal.
Project Structure and Key Terms
The JVC will be incorporated based on a 50:50 equity shareholding between NALCO and NLCIL. The project involves several critical long-term commitments designed to ensure stable operations for NALCO's expansion plans.
Key terms established under the agreement include:
- Power Purchase Agreement (PPA): The JVC will execute a 25-year PPA with NALCO, guaranteeing 100% offtake of power generated under Section 62 of the Electricity Act, 2003.
- Fuel Supply: A Fuel Supply Agreement (FSA) is in place between the JVC and NLCIL for coal supply at the Coal India notified price.
- Governance: Both companies will hold equal representation on the Board of Directors of the newly formed JVC.
The collaboration establishes a comprehensive framework to meet NALCO's industrial power requirements while simultaneously facilitating the development of critical energy infrastructure in Odisha.
NATIONALUM Stock Price Movement
National Aluminium Company Limited saw its stock edge higher today, closing at ₹349.75 following a 2.47% gain. The equity traded within an intraday range of ₹339.75 to ₹354.60, with over 10.7 million shares changing hands during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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