NALCO, NLC India form JV for 1,080 MW captive thermal power plant
National Aluminium Company Limited (NALCO) and NLC India Limited (NLCIL) have signed a Joint Venture Agreement (JVA) to develop a 4×270 MW (1,080 MW) coal-based captive thermal power plant at Angul, Odisha. The agreement was signed in the presence of Union Minister for Coal and Mines G. Kishan Reddy in New Delhi, along with senior officials from the Ministries of Coal and Mines and the two companies.
The joint venture company (JVC) will be incorporated under the Companies Act, 2013, with its registered office in Chennai and corporate office in Bhubaneswar. NALCO and NLCIL will each hold a 50% equity stake.
The JVC will sign a 25-year Power Purchase Agreement (PPA) with NALCO for 100% power offtake under Section 62 of the Electricity Act, 2003. It will also enter into a long-term Fuel Supply Agreement (FSA) with NLCIL for coal at Coal India notified prices.
The project is intended to meet the additional power requirement arising from NALCO’s planned 0.5 MTPA aluminium smelter expansion at Angul, which is targeted for commissioning in 2030-31. The company requires around 800 MW of additional captive power, and the new thermal capacity will be developed in phases within the existing captive power plant premises.
Alongside the thermal project, the JVC will also pursue 200-250 MW of firm renewable energy (RE-RTC) to meet Renewable Consumption Obligation (RCO) requirements. NLCIL will support this through long-term PPAs or group captive arrangements from its renewable energy portfolio.
The agreement follows the non-binding Memorandum of Understanding signed by the two companies on February 14, 2026, which outlined collaboration on thermal and renewable energy projects and long-term coal supply.
The proposed 1,080 MW expansion is a new project, replacing earlier proposals for Units 11 and 12 (2×250 MW), which were not taken forward. NALCO applied for Terms of Reference (ToR) for the project in March 2026. The Expert Appraisal Committee recommended the ToR in May 2026, and formal approval was granted in June 2026. The project has an estimated capital cost of Rs 11,313.47 crore, including Rs 1,358 crore earmarked for environmental protection measures.
Photo credit: NLC India/Facebook
