National Aluminium Company (Nalco) and NLC India (NLCIL) have signed a joint venture-cum-shareholders’ agreement to establish a 1,080 MW thermal captive power plant in Anugul, Odisha. The partnership aims to support Nalco’s future aluminium production expansion with a reliable energy supply.
The project will be developed under a 50:50 joint venture between the two companies. It includes the construction of a 4×270 MW power facility, which will meet the energy needs of Nalco’s planned 0.5 million tonne per annum aluminium smelter expansion project.
The entire power generated from the facility will be supplied to Nalco through a 25-year Power Purchase Agreement (PPA) under Section 62 of the Electricity Act, 2003.
To ensure steady fuel availability, the joint venture will also enter into a Fuel Supply Agreement (FSA) with NLC India for long-term coal supply at Coal India’s notified prices. Along with thermal power generation, both companies will explore opportunities to procure around 200–250 MW of round-the-clock renewable energy to promote cleaner operations.
The collaboration is expected to strengthen Nalco’s energy security, support its growth plans, and reduce operational challenges by ensuring a stable power supply for its expanding aluminium operations.
