National Aluminium Company Limited (NALCO) and NLC India Limited (NLCIL) have signed a Joint Venture-cum-Shareholders’ Agreement (JVA) to establish a 50:50 joint venture company for the development of a 1,080 MW (4×270 MW) thermal captive power plant at Angul, Odisha. The agreement marks a significant step towards strengthening long-term energy security for NALCO’s expanding aluminium operations while reinforcing collaboration between the two Navratna public sector enterprises.
The agreement was signed in the presence of Union Minister for Coal and Mines G Kishan Reddy in New Delhi, along with senior officials from the Ministries of Coal and Mines and representatives of both companies. The proposed joint venture company will be incorporated under the Companies Act, 2013, with its registered office in Chennai and corporate office in Bhubaneswar. NALCO and NLCIL will each hold an equal equity stake in the venture.
Under the arrangement, the joint venture will supply the entire power generated from the plant exclusively to NALCO through a 25-year Power Purchase Agreement under the provisions of the Electricity Act, 2003. The project will also benefit from a long-term Fuel Supply Agreement with NLCIL, ensuring coal availability at Coal India notified prices, thereby providing greater fuel security and cost stability for the captive power facility.
The project builds upon the Memorandum of Understanding signed between the two companies in February 2026 to explore opportunities in thermal and renewable energy development, as well as long-term fuel supply arrangements. The captive power plant is being developed to meet the growing energy requirements of NALCO’s ongoing expansion at Angul, where the company is setting up an additional 0.5 million tonnes per annum aluminium smelter scheduled for commissioning during 2030-31. The expanded smelting capacity is expected to require nearly 800 MW of additional reliable power. The new thermal power facility will be developed in phases within NALCO’s existing captive power plant complex, enabling efficient utilisation of available infrastructure and faster project execution.
Alongside thermal generation, the joint venture will also pursue the development of 200-250 MW of renewable energy capacity to support compliance with Renewable Consumption Obligation (RCO) norms. NLC India will facilitate renewable power through long-term power purchase agreements or group captive arrangements using its existing renewable energy portfolio.
With more than six decades of experience in coal and lignite mining, thermal generation and renewable power development, NLC India will bring project execution expertise and long-term fuel assurance to the venture, including coal supplies from its nearby Machhakata coal mine in Odisha. The partnership is expected to enhance operational reliability, improve energy efficiency and support the long-term growth plans of India’s aluminium sector.
