THEBUSINESSBYTES BUREAU

NEW DELHI/BHUBANESWAR, JULY 8, 2026

In a major boost to India's aluminium and energy infrastructure, National Aluminium Company Limited (NALCO) and NLC India Limited (NLCIL) on Wednesday signed a Joint Venture-cum-Shareholders' Agreement to establish a 1,080 MW (4×270 MW) captive thermal power plant at Anugola in Odisha. The strategic partnership is aimed at securing long-term power requirements for NALCO's upcoming aluminium smelter expansion while reinforcing energy security through an integrated coal supply arrangement.

The agreement was signed in the presence of Union Minister for Coal and Mines, G. Kishan Reddy, in New Delhi on Wednesday, marking a significant milestone in the strategic collaboration between the two Navratna Central Public Sector Enterprises (CPSEs).

Among those present on the occasion were Additional Secretary, Ministry of Coal, and CMD (Additional Charge), NLCIL, Sanoj Kumar Jha; NALCO Chairman-cum-Managing Director Brijendra Pratap Singh; Joint Secretary, Ministry of Mines, Vivek Kumar Bajpai; NALCO Director (Projects & Technical) Jagdish Arora; NALCO Director (Finance) Abhay Kumar Behuria; and NLCIL Director (Finance) Dr. Prasanna Kumar Acharya, along with senior officials from the Ministries of Coal and Mines and both CPSEs.

The proposed Joint Venture Company 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 per cent equity stake in the venture.

As part of the agreement, the JVC will enter into a 25-year Power Purchase Agreement (PPA) with NALCO for 100 per cent of the power generated under Section 62 of the Electricity Act, 2003. It will also execute a long-term Fuel Supply Agreement with NLCIL for coal at Coal India notified prices, ensuring reliable fuel availability for the project.

The agreement builds on the non-binding Memorandum of Understanding (MoU) signed by NALCO and NLCIL on February 14, 2026, in Chennai. The MoU had laid the foundation for collaboration in thermal and renewable energy development as well as long-term coal supply arrangements.

The captive power project assumes strategic importance as NALCO is undertaking a 0.5 MTPA aluminium smelter expansion at Anugola, with commissioning targeted during 2030-31. The expansion will require an additional 800 MW of dependable captive power to support enhanced production capacity.

To meet this growing energy requirement, the Joint Venture Company will develop a 4×270 MW brownfield thermal power project within NALCO's existing captive power plant premises at Anugola in a phased manner.

In addition, NALCO plans to source 200–250 MW of firm Renewable Energy-Round the Clock (RE-RTC) power to meet Renewable Consumption Obligation (RCO) norms. NLCIL will support this initiative through long-term power purchase agreements or group captive arrangements leveraging its renewable energy portfolio.

NLCIL, a Navratna CPSE under the Ministry of Coal with more than six decades of expertise in lignite and coal mining, as well as thermal and renewable power generation, will bring proven project execution capabilities and long-term fuel security to the venture. The company will also leverage coal supplies from its Machhakata coal mine in Odisha, located close to the Anugola project site, to ensure operational efficiency and uninterrupted fuel availability.