NALCO and NLC India Partner for 1,080 MW Captive Thermal Power Project

09 Jul 2026, 12:06 by Vinay Kakkad · KalingaTV

National Aluminium Company Ltd. (NALCO) and NLC India Ltd. have moved ahead with a joint venture to develop a 1,080 MW captive thermal power plant in Odisha, a project that strengthens NALCO’s long-term energy security as it prepares to expand aluminium production. The announcement is likely to keep both state-run companies in the spotlight in the stock market.

The companies have signed a Joint Venture-cum-Shareholders’ Agreement to establish a 50:50 venture that will construct a 4×270 MW thermal captive power plant at Angul. The facility is intended to supply electricity for NALCO’s proposed 0.5 million tonne per annum aluminium smelter expansion, where uninterrupted power is a critical operational requirement.

Under the agreement, the joint venture company will execute a 25-year Power Purchase Agreement with NALCO under Section 62 of the Electricity Act, 2003. The arrangement provides for NALCO to procure the plant’s entire electricity output, giving the aluminium producer a dedicated source of power for its expanded operations.

Fuel supply has also been built into the project framework. NLC India will enter into a long-term Fuel Supply Agreement with the joint venture and supply coal at Coal India Ltd.‘s notified prices. Alongside the thermal project, the two public sector enterprises will explore long-term coal sourcing and assess the feasibility of securing 200-250 MW of firm Renewable Energy Round-the-Clock (RE-RTC) power to diversify NALCO’s future energy mix.

The project forms part of NALCO’s broader expansion strategy, where dependable captive generation remains essential because aluminium smelting is among the most power-intensive industrial processes. By combining thermal generation with renewable power planning, the companies are seeking to ensure stable electricity availability over the long term.

NALCO, a Navratna Central Public Sector Enterprise under the Ministry of Mines, is one of India’s largest integrated producers of bauxite, alumina, aluminium and power. The Union government owns a 51.28% stake in the company. Its operations include the captive Panchpatmali bauxite mines, the alumina refinery at Damanjodi in Odisha’s Koraput district, and the aluminium smelter, captive power plant and captive coal mines at Angul.