NALCO & NLC India Sign JV for 1,080 MW Captive Power Plant

Key Highlights NALCO and NLC India have signed a 50:50 Joint Venture (JV) Agreement to develop a 1,080 MW (4×270 MW) captive thermal power plant at Angul, Odisha. Project Details • The power plant will supply 100% captive power for NALCO's 0.5 MTPA aluminium smelter expansion. • The JV will enter into a 25-year Power Purchase Agreement (PPA) with NALCO. • NLC India will supply coal for the project through a long-term Fuel Supply Agreement (FSA). • The partners will also explore the development of 200–250 MW of firm renewable energy to meet Renewable Consumption Obligation (RCO) requirements. • The joint venture will be incorporated under the Companies Act, with NALCO and NLC India each holding a 50% stake. What It Means • The project ensures long-term power security for NALCO's aluminium expansion plans. • It strengthens NLC India's presence in power generation and long-term fuel supply. • The integration of renewable energy supports compliance with regulatory obligations and sustainability goals. Market Impact Impact: Positive The JV enhances long-term earnings visibility for both companies by securing captive power for NALCO and expanding NLC India's power development and fuel supply business. Learning Outcome For energy-intensive industries such as aluminium, captive power plants help reduce energy costs, improve supply reliability, and enhance operational efficiency. Long-term PPAs and fuel supply agreements also provide predictable cash flows and improve project viability.