NALCO and NLC India Sign 50:50 Joint Venture for 1,080 MW Captive Power Plant in Odisha

Synopsis: National Aluminium Company Limited (NALCO) has entered into a 50:50 joint venture with NLC India Limited to develop a 1,080 MW captive thermal power plant at Anugola, Odisha. The project is aimed at supporting NALCO’s upcoming aluminium smelter expansion and ensuring long-term energy security.

Shares of National Aluminium Company Limited (NALCO) are likely to remain in focus after the company announced that it has signed a Joint Venture-cum-Shareholders’ Agreement (JVA) with NLC India Limited (NLCIL) to establish a 50:50 joint venture company for developing a 4×270 MW (1,080 MW) captive thermal power plant at Anugola, Odisha.

National Aluminium Company Limited has a total market capitalization of approximately Rs. 63,455.63 crore. The company’s shares were trading at Rs. 345.65 apiece on the stock exchange. The stock has declined 0.50 percent over the last five trading sessions, while it has declined 9.96 percent over the last month. The stock touched a 52-week high of Rs. 445.15 and a 52-week low of Rs. 179.93.

According to the company’s press release, the joint venture company will be incorporated under the Companies Act, 2013, with its registered office in Chennai and corporate office in Bhubaneswar. NALCO and NLC India will each hold a 50 percent equity stake in the venture. The joint venture will enter into a 25-year Power Purchase Agreement (PPA) with NALCO for 100 percent power offtake, while NLC India will provide long-term coal supply through a Fuel Supply Agreement at Coal India notified prices.

The proposed captive power project is aimed at meeting the future energy requirements of NALCO’s 0.5 million tonne per annum (MTPA) aluminium smelter expansion at Anugola, which is targeted for commissioning in FY31. The expansion is expected to require around 800 MW of additional captive power, and the new 1,080 MW plant will be developed in phases within NALCO’s existing captive power plant premises. Alongside thermal generation, the company also plans to source 200–250 MW of renewable energy to meet Renewable Consumption Obligation (RCO) norms, with support from NLC India’s renewable energy portfolio.

The project is strategically significant as power is one of the largest cost components in aluminium production. A dedicated captive power source helps ensure uninterrupted electricity supply, lowers dependence on external power procurement, and enhances cost competitiveness. The long-term coal supply arrangement with NLC India further strengthens fuel security, enabling stable operations while supporting NALCO’s planned capacity expansion.

India’s aluminium demand is expected to witness sustained growth, driven by increasing consumption from infrastructure, renewable energy, electric vehicles, railways, defence, and construction sectors. At the same time, investments in captive power generation are becoming increasingly important for energy-intensive industries to improve operational efficiency, reduce production costs, and support long-term expansion plans.

For investors, the joint venture marks a key strategic milestone for NALCO as it strengthens the company’s long-term energy security and supports its downstream aluminium expansion strategy. The combination of captive thermal power, renewable energy integration, and assured coal supply is expected to enhance operational resilience and support sustainable growth over the long term.

Incorporated in 1981, National Aluminium Company Limited (NALCO) is one of India’s leading integrated aluminium producers engaged in the mining of bauxite and the manufacturing and sale of alumina and aluminium. The company operates across the entire aluminium value chain, including mining, refining, smelting, power generation, and metal production, catering to both domestic and international markets.

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