National Aluminium Company (Nalco) and NLC India Ltd (NLCIL) have entered into a 50:50 joint venture through a joint venture-cum-shareholders’ agreement to establish a 1,080 MW captive thermal power plant at Angul, Odisha.
The project will comprise four 270 MW generating units and is being developed to cater exclusively to the power requirements of Nalco’s proposed expansion of its aluminium smelter capacity by 0.5 million ton per annum. Under a long-term Power Purchase Agreement (PPA) spanning 25 years, the entire electricity output from the plant will be supplied to Nalco in accordance with the provisions of Section 62 of the Electricity Act, 2003.
To ensure uninterrupted fuel availability, the joint venture will sign a Fuel Supply Agreement (FSA) with NLC India, enabling coal procurement at Coal India’s notified prices for the life of the project. In addition to the thermal power facility, both companies will also explore sourcing 200–250 MW of round-the-clock renewable energy as part of their strategy to enhance sustainability and diversify the project’s energy mix.
The initiative is expected to reinforce Nalco’s long-term energy security, improve operational reliability and support the company’s ongoing capacity expansion while integrating cleaner energy solutions into its operations.