Bhubaneswar: In a major boost to Odisha’s industrial and energy infrastructure, National Aluminium Company Limited (NALCO) and NLC India Limited (NLCIL) have signed a Joint Venture-cum-Shareholders’ Agreement (JVA) to form a 50:50 joint venture to develop a 1,080 MW (4×270 MW) thermal captive power plant at Angul, Odisha.
The agreement was signed in the presence of Union Coal and Mines Minister G. Kishan Reddy in New Delhi, marking a significant step in the strategic collaboration between the two Navratna Central Public Sector Enterprises under the Ministries of Mines and Coal.
The proposed Joint Venture Company (JVC) will be incorporated under the Companies Act, 2013, with its registered office in Chennai and corporate office in Bhubaneswar, NALCO said in a press release.
NALCO and NLC India will each hold a 50% equity stake in the venture.
Under the agreement, the JVC will enter into a 25-year Power Purchase Agreement with NALCO for the supply of its entire power output under Section 62 of the Electricity Act, 2003. It will also sign a long-term Fuel Supply Agreement with NLC India for coal at Coal India-notified prices.
The agreement builds on the non-binding Memorandum of Understanding signed by the two companies in Chennai on February 14, 2026, which laid the foundation for cooperation in thermal and renewable energy projects as well as long-term coal supply arrangements.
The captive power project has been planned to meet the additional energy requirement arising from NALCO’s ongoing 0.5 million tonnes per annum aluminium smelter expansion at Anugul, scheduled for commissioning in 2030-31.
The expansion is expected to require around 800 MW of additional assured captive power, with the new thermal capacity to be developed in phases within NALCO’s existing Captive Power Plant premises.
In addition to the thermal project, the joint venture will pursue 200-250 MW of firm renewable energy to meet Renewable Consumption Obligation norms. NLC India will support this initiative through long-term Power Purchase Agreements or Group Captive arrangements using its renewable energy portfolio.
NLC India, a Navratna CPSE under the Ministry of Coal, brings more than six decades of experience in lignite and coal mining, along with thermal and renewable power generation. The company will also support the project through long-term coal supply, including from its Machhakata coal mine in Odisha, located close to the Anugul project site.
Senior officials present during the signing ceremony included Sanoj Kumar Jha, Additional Secretary, Ministry of Coal and CMD (Additional Charge), NLC India; NALCO CMD Brijendra Pratap Singh; Joint Secretary, Ministry of Mines, Vivek Kumar Bajpai; NALCO Directors Jagdish Arora and Abhay Kumar Behuria; NLC India Director (Finance) Dr. Prasanna Kumar Acharya; and other senior officials from the Ministries of Coal and Mines, NALCO and NLC India.
