NALCO, NLC India sign 1,080 MW power plant JV for Odisha aluminium expansion

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State-owned National Aluminium Company Limited (NALCO) has signed a joint venture agreement with NLC India Limited (NLCIL) to establish a 1,080 MW thermal captive power plant in Odisha, strengthening the energy backbone for its planned aluminium smelter expansion.  

In a regulatory filing, NALCO elaborated that the two public sector enterprises have signed a Joint Venture-cum-Shareholders' Agreement (JVA) to create a 50:50 joint venture company to develop a 4x270 MW (1,080 MW) thermal captive power plant at Anugul, Odisha.  

The facility is intended to supply captive power to NALCO's USD 3.5 billion aluminium smelter expansion project with a 500,000-tonne capacity, supporting the company's long-term production growth. 

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Long-term power, renewable energy and coal supply

Apart from the thermal power project, the partners will also explore securing 200-250 MW of round-the-clock renewable energy (RE-RTC) through long-term arrangements. The agreement further includes plans to establish long-term coal supply mechanisms for the project. 

The JV company would execute a 25-year Power Purchase Agreement (PPA) with NALCO for 100 per cent power offtake under Section 62 of the Electricity Act, 2003. In addition, NLC India will enter into a Fuel Supply Agreement (FSA) to provide coal at Coal India-notified prices, ensuring fuel security for the power plant.

A Navratna public sector enterprise under the Ministry of Mines, NALCO’s operations include the Panchpatmali bauxite mines, the Damanjodi alumina refinery in Koraput district, and the Anugul aluminium smelter, along with captive power generation and coal mining facilities. The Government of India currently holds a 51.28 per cent equity stake in the company.

The new JV is expected to reinforce NALCO's integrated aluminium production network while supporting its ongoing capacity expansion plans.

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