NLC India and NALCO Form Equal Partnership for 1,080 MW Thermal Power Plant
NLC India Limited signed a Joint Venture Agreement with NALCO to develop a 1,080 MW coal-based captive thermal power plant at Angul, Odisha, with equal 50:50 equity participation and shares at ₹10 face value. The JV includes a 25-year Fuel Supply Agreement with NLC India and a 25-year Power Purchase Agreement with NALCO for 100% power offtake, supporting NALCO's 0.5 MTPA Aluminium Smelter Expansion Project.
*this image is generated using AI for illustrative purposes only.
NLC India Limited has signed a Joint Venture Agreement with National Aluminium Company Limited (NALCO) to incorporate a Joint Venture Company for the development of a 4×270 MW (1,080 MW) coal-based thermal captive power plant at Angul, Odisha. The project is intended to meet the captive power requirement of NALCO's 0.5 MTPA Aluminium Smelter Expansion Project. The agreement was signed on July 8, 2026, and disclosed to the exchanges under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The Joint Venture Company will be newly incorporated with NLC India and NALCO holding equity shares in a 50:50 ratio. Equity shares will be issued at a face value of ₹10 each. Both parties will have equal nomination rights on the Board of the Joint Venture Company. While the parties are related to promoter or group companies, the transaction does not fall within related party transactions.
Key Terms of the Agreement
The agreement outlines specific operational and financial terms for the Joint Venture Company, including long-term agreements for fuel supply and power purchase to ensure the viability of the captive power plant.
- Equity Participation: 50:50 ratio between NLC India and NALCO.
- Fuel Supply: The Joint Venture Company will execute a Fuel Supply Agreement (FSA) with NLC India from its Machhakata coal mine or any other mines for a period of 25 years.
- Power Purchase: The Joint Venture Company will execute a 25-year Power Purchase Agreement (PPA) with NALCO for 100% offtake of power under Section 62 of the Electricity Act, 2003.
The table below summarizes the key details of the agreement:
| Particulars: | Details |
|---|---|
| Partner: | National Aluminium Company Limited (NALCO) |
| Project Capacity: | 4×270 MW (1,080 MW) |
| Location: | Angul, Odisha |
| Equity Ratio: | 50:50 (NLC India : NALCO) |
| Share Face Value: | ₹10 each |
| Fuel Supply Agreement Tenure: | 25 years |
| Power Purchase Agreement Tenure: | 25 years |
| Offtake: | 100% by NALCO |
Historical Stock Returns for NLC India
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.43% | +0.02% | -4.91% | +16.20% | +32.82% | +400.08% |
What is the projected timeline for the financial closure and commercial operation date of the 1,080 MW thermal power plant?
How will the capital expenditure for this project impact NLC India's balance sheet and dividend policy in the near term?
What are the potential environmental and regulatory risks associated with developing a new coal-based thermal plant in the current energy transition landscape?
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