NLC India and NALCO Form 50:50 JV for 1,080 MW Captive Power Plant

NLC India Limited (NLCIL) and National Aluminium Company Limited (NALCO) have signed a Joint Venture Agreement (JVA) to establish a new Joint Venture Company (JVC). The venture will develop a 1,080 MW (4x270 MW) coal-based thermal captive power plant in Angul, Odisha, to support NALCO’s planned 0.5 MTPA aluminium smelter expansion. Key Deal Highlights: JV Structure: The partnership will operate on a 50:50 equity split (face value of ₹10 per share), with both companies holding equal board nomination rights and the first right to share subscription. Fuel Security: The JVC will execute a 25-year Fuel Supply Agreement (FSA) with NLCIL to source coal from the Machhakata mine or other designated mines. Revenue Visibility: A 25-year Power Purchase Agreement (PPA) will be signed with NALCO for the 100% offtake of the power generated, ensuring long-term revenue certainty for the project. Strategic Impact: This collaboration perfectly synergizes NLCIL’s core expertise in coal mining and power generation with NALCO’s requirement for reliable, large-scale captive power. The binding 25-year FSA and PPA structures de-risk the project, ensuring operational viability while directly facilitating NALCO's strategic capacity expansion in the aluminum sector.