National Aluminium Company Ltd (NALCO) has formed a 50:50 joint venture with NLC India Limited for a 1,080 MW captive power plant. The plant will power NALCO's 0.5 MTPA aluminium smelter expansion in Odisha.
NALCO and NLC India Ink 50:50 JV for 1,080 MW Power Plant
Project Capacity: 1,080 MW (4 units of 270 MW) Partner: NLC India Limited (NLCIL) Reader Takeaway: Secures power for expansion; long-term PPA offers visibility. ## What just happened National Aluminium Company Ltd (NALCO) and NLC India Limited (NLCIL) have entered into a Joint Venture (JV) agreement to establish a 1,080 MW thermal captive power plant. The JV will be a 50:50 equity partnership, located in Angul, Odisha. ## Why this matters This strategic move is crucial for NALCO's planned 0.5 MTPA Aluminium Smelter Expansion Project, ensuring a dedicated and stable power supply. The JV will execute a 25-year Power Purchase Agreement (PPA) with NALCO for 100% offtake of generated power. ## The backstory Both NALCO and NLCIL are Government Companies. This transaction is exempt from related party transaction rules under the Companies Act, 2013 and SEBI (LODR) Regulations, 2015. The agreement also includes a Fuel Supply Agreement (FSA) with NLCIL for coal sourcing at Coal India notified prices. ## What changes now The formation of this JV de-risks power availability for NALCO's expansion, aiming to stabilize energy costs and ensure operational readiness. The JV also plans to explore 200-250 MW of firm Renewable Energy (RE-RTC). ## Risks to watch Investors should track the construction timeline and successful incorporation of the JVC. Any delays could impact the smelter expansion schedule.
