NewsNALCO Forms 50:50 JV With NLC India to Build 1,080 MW Thermal Power Plant for Odisha Aluminium Smelter ExpansionNALCO Forms 50:50 JV With NLC India to Build 1,080 MW Thermal Power Plant for Odisha Aluminium Smelter Expansion
NALCO and NLC India Limited formed a 50:50 Joint Venture Company to develop a 4×270 MW (1,080 MW) thermal captive power plant at Anugola, Odisha, following a JVA signed on July 8, 2026. The JVC will execute a 25-year PPA with NALCO for 100% power offtake, supporting NALCO's 0.5 MTPA aluminium smelter expansion requiring an additional 800 MW of captive power, with commissioning envisaged in 2030-31.
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National Aluminium Company Limited (NALCO) and NLC India Limited (NLCIL) signed a Joint Venture-cum-Shareholders' Agreement (JVA) on July 8, 2026, to form a 50:50 Joint Venture Company (JVC) for developing a 4×270 MW (1,080 MW) thermal captive power plant (CPP) at Anugola, Odisha. The agreement was executed in New Delhi in the presence of Shri G. Kishan Reddy, Union Minister of Coal and Mines, Government of India. This milestone follows a non-binding Memorandum of Understanding signed between NALCO and NLCIL on 14th February 2026 at Chennai, which established the broad framework for collaboration in thermal and renewable energy project development and long-term coal supply arrangements.
The signing ceremony was attended by several senior officials, including Shri Sanoj Kumar Jha, IAS, Additional Secretary, Ministry of Coal and CMD-Addl. Charge, NLCIL; Shri Brijendra Pratap Singh, CMD, NALCO; Shri Vivek Kumar Bajpai, Joint Secretary, Ministry of Mines; Shri Jagdish Arora, Director (Projects & Technical); Shri Abhay Kumar Behuria, Director (Finance), NALCO; and Dr. Prasanna Kumar Acharya, Director (Finance), NLCIL, along with other senior officials from the Ministries of Coal and Mines.
Strategic Rationale and Power Requirements
NALCO is undertaking a 0.5 MTPA Aluminium Smelter expansion at Anugola, Odisha, with commissioning envisaged in 2030-31, which necessitates an additional 800 MW of assured captive power. To meet this requirement, the proposed JVC will develop a 4×270 MW brownfield thermal capacity addition within NALCO's existing CPP premises at Anugola in a phased manner. Additionally, NALCO will pursue 200–250 MW of firm Renewable Energy (RE-RTC) in line with Renewable Consumption Obligation (RCO) norms, with NLCIL extending support through long-term Power Purchase Agreements (PPA) or Group Captive arrangements from its renewable energy portfolio.
NLCIL, a Navratna Central Public Sector Enterprise (CPSE) under the Ministry of Coal with over six decades of experience in lignite and coal mining and thermal/renewable power generation, brings proven project execution capability and assured long-term coal supply, including from its Machhakata coal mine in Odisha, which is located in proximity to the Anugola site.
Joint Venture Structure and Terms
The JVC will be incorporated under the Companies Act, 2013, with its Registered Office at Chennai and Corporate Office at Bhubaneswar. Both NALCO and NLCIL will hold equal equity share capital, with equal nomination rights on the Board of Directors. The key parameters of the joint venture are outlined below:
| Parameter: | Details |
|---|---|
| Project Capacity: | 4×270 MW (1,080 MW) |
| Location: | Anugola, Odisha |
| Equity Ratio: | 50:50 (NALCO : NLCIL) |
| Registered Office: | Chennai |
| Corporate Office: | Bhubaneswar |
| PPA Tenor: | 25 years |
| Power Offtake: | 100% by NALCO |
| Coal Supply: | Coal India notified prices via NLCIL |
The JVC will execute a 25-year Power Purchase Agreement with NALCO for 100% offtake of power under Section 62 of the Electricity Act, 2003, and a long-term Fuel Supply Agreement with NLCIL for coal at Coal India notified prices.
Regulatory and Relationship Disclosures
NALCO and NLCIL are both Government Companies operating under the administrative control of the Ministry of Mines and the Ministry of Coal respectively. As transactions between two Government Companies are exempt under Section 188(1) of the Companies Act, 2013, and Regulation 23(5)(a) of the SEBI (LODR) Regulations, 2015, this transaction does not fall within related party transactions requiring arm's length approval. The agreement was disclosed to the stock exchanges in compliance with Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, confirming that shares in the JVC will be issued after its incorporation in the ratio of the agreed equity shareholding.
Historical Stock Returns for NALCO
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.10% | +2.99% | -7.52% | -0.81% | +85.48% | +311.71% |
How will the capital expenditure for the 1,080 MW thermal plant be split between NALCO and NLCIL, and what is the projected timeline for financial closure?
What are the potential environmental and regulatory risks associated with commissioning new thermal capacity in 2030-31 amidst India's push for green energy transition?
Could this joint venture structure serve as a blueprint for future collaborations between NLCIL and other metal manufacturers requiring captive power?
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