National Aluminium Company Limited (NALCO) has informed the stock exchanges about signing a Joint Venture Agreement with NLC India Limited (NLCIL) on July 8, 2026. The agreement was executed pursuant to Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.
Nature of the Event
The company has incorporated a new Joint Venture Company (JVC) with NLC India Limited on a 50:50 equity basis for the development of a 4×270 MW (1,080 MW) Thermal Captive Power Plant at Angul, Odisha.
Purpose and Rationale
The power plant will meet the captive power requirement of NALCO's 0.5 MTPA Aluminium Smelter Expansion Project. The agreement also includes exploration of long-term arrangements for 200-250 MW of firm Renewable Energy (RE-RTC) and long-term coal supply.
Significant Terms of Agreement
- Equity participation: 50:50 (NALCO:NLCIL)
- JVC to execute a 25-year Power Purchase Agreement (PPA) with NALCO for 100% offtake of power under Section 62 of the Electricity Act, 2003
- Fuel Supply Agreement (FSA) with NLCIL for coal at Coal India notified price
- Both parties will have equal nomination on the Board of Directors
Shareholding Structure
Currently, there is no shareholding between the parties. Upon incorporation of the JVC, NALCO and NLCIL shall each hold 50% of the equity share capital of the JVC. Shares shall be issued after incorporation in the ratio of equity shareholding.
Relationship Between Parties
NALCO and NLCIL are both Government Companies under the administrative control of the Ministry of Mines and the Ministry of Coal respectively. The transaction is exempt from related party transaction requirements under Section 188(1) of the Companies Act, 2013 and Regulation 23(5)(a) of the SEBI (LODR) Regulations, 2015, as transactions between two Government Companies are exempted.
Termination/Amendment
Not applicable at this stage. The listed entity shall disclose additional details to the stock exchanges in case of termination or amendment of the agreement.