National Aluminium Company Limited (NALCO) and NLC India Limited (NLCIL) have officially established a 50:50 joint venture. On Wednesday, July 8, 2026, they signed a Joint Venture-cum-Shareholders’ Agreement to construct a 1,080 MW thermal captive power plant (CPP) located in Anugola, Odisha.

Joint Venture Overview

This agreement forms a joint venture company (JVC) that will develop a 4×270 MW power facility. The registered office of the JVC will be situated in Chennai, while its corporate office will be located in Bhubaneswar.

Power Purchase and Fuel Supply Arrangements

The JVC is set to sign a 25-year Power Purchase Agreement with NALCO, ensuring the complete off-take of electricity produced. Additionally, it will establish a long-term Fuel Supply Agreement with NLCIL for coal, adhering to prices set by Coal India.

Strategic Significance

This collaboration follows a preliminary Memorandum of Understanding signed between NALCO and NLCIL on February 14, 2026. The partnership is designed to bolster NALCO’s expansion efforts and enhance NLCIL’s energy initiatives.

NALCO’s Expansion Requirements

NALCO is currently working on an expansion of its aluminium smelter in Anugola, aiming to increase capacity by 0.5 million tonnes per annum (MTPA), with plans for completion by 2030-31. This growth necessitates an additional 800 MW of reliable captive power.

Development Plans for the Plant

The JVC will implement the 4×270 MW brownfield thermal capacity in phases, utilizing NALCO’s existing CPP site in Anugola. Furthermore, NALCO intends to explore 200-250 MW of firm Renewable Energy (RE-RTC), backed by NLCIL.

NLCIL’s Contributions

NLCIL, recognized as a Navratna Central Public Sector Enterprise, brings valuable expertise in lignite and coal mining, along with thermal and renewable power generation. It will guarantee a long-term coal supply, including resources from its Machhakata coal mine located near Anugola.