NLC India and NALCO Join Forces to Develop 1,080 MW Coal-based Thermal Captive Power Plant in Odisha
NLC India Limited has entered into a Joint Venture Agreement with National Aluminium Company Limited (NALCO) to establish a new entity dedicated to developing a large-scale captive power plant. The joint venture aims to meet the energy requirements of NALCO's upcoming smelter expansion project in Angul, Odisha.The agreement mandates the incorporation of a Joint Venture Company (JVC), where both NLC India Limited and NALCO will hold an equal 50:50 equity stake upon the company’s formation. The JVC is tasked with developing a Coal based Thermal Captive Power Plant, which has a capacity of 4x270 MW, totaling 1,080 MW. This facility is essential to support NALCO's 0.5 MTPA Aluminium Smelter Expansion Project.
The agreement outlines key commercial and operational terms between the JVC and its partners. These terms dictate how power generation and resource supply will be managed over the coming decades.
Key elements of the Joint Venture Agreement include:
| Feature | Details |
|---|---|
| Equity Structure | 50:50 (NLCIL to NALCO) in the newly incorporated JVC. |
| Fuel Supply | The JVC will execute a Fuel Supply Agreement (FSA) with NLC India Limited, securing coal from Machhakata coal mine or other designated mines for a period of 25 years. |
| Power Offtake | The JVC is set to sign a Power Purchase Agreement (PPA) with NALCO, guaranteeing 100% power offtake under Section 62 of the Electricity Act, 2003, spanning 25 years. |
| Equity Issuance | Equity Shares will be issued at the face value of Rs.10/- each following the incorporation of the JVC. |
| Board Representation | Both NLC India Limited and NALCO will have equal nomination rights on the Board of Directors of the Joint Venture Company. |
The agreement confirms that both companies are related, but the transaction is structured as non-related party business activity for the purpose of this joint venture.
NLCINDIA Stock Price Movement
NLC India Limited shares slipped on Wednesday, shedding 2.56% to settle at ₹294.25 after declining by ₹7.75 from its previous close. The stock saw a traded volume of 2.75 million shares 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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