NALCO, NLC India Sign JV Agreement to Set Up 1,080 MW Captive Thermal Power Plant in Odisha
New Delhi: A Navratna PSU National Aluminium Company Limited (NALCO) has signed a Joint Venture (JV) Agreement with NLC India Limited (NLCIL) to establish a 1,080 MW captive thermal power plant at Angul, Odisha. The agreement was signed on July 8, 2026, according to the company's stock exchange filing.
The two public sector companies will incorporate a Joint Venture Company (JVC) with an equal 50:50 equity partnership to develop the 4×270 MW thermal captive power plant. The project will primarily meet the power requirements of NALCO's 0.5 million tonnes per annum (MTPA) aluminium smelter expansion project at Angul.
50:50 Joint Venture Between NALCO and NLC India
Under the JV Agreement, NALCO and NLC India will each hold 50% equity in the newly incorporated Joint Venture Company.
The JVC will sign a 25-year Power Purchase Agreement (PPA) with NALCO, ensuring 100% of the electricity generated is supplied to the aluminium producer. The company will also enter into a Fuel Supply Agreement (FSA) with NLC India for long-term coal supply at Coal India notified prices.
Apart from thermal power generation, the agreement also includes plans to explore 200-250 MW of firm renewable energy (RE-RTC) to support NALCO's long-term energy requirements.
Project to Support Aluminium Expansion
The captive power plant will play a key role in supporting NALCO's ongoing aluminium smelter expansion in Odisha. Reliable power availability is considered essential for aluminium production, making the project strategically important for the company's future growth.
Both companies will have equal representation on the Board of the Joint Venture Company.
Government-Owned Companies
NALCO functions under the Ministry of Mines, while NLC India Limited operates under the Ministry of Coal. As both are Government of India companies, the transaction is not treated as a related-party transaction under the applicable provisions of the Companies Act and SEBI regulations.
The incorporation of the Joint Venture Company and the subsequent execution of project agreements will be carried out in the next phase.
The partnership marks an important step in strengthening NALCO's long-term power security while supporting its aluminium production expansion through dedicated captive power infrastructure.