Joint Venture Agreement Details

National Aluminium Company Limited (NALCO) and NLC India Limited (NLCIL) have executed a Joint Venture-cum-Shareholders' Agreement (JVA) for the formation of a 50:50 Joint Venture Company (JVC).

The agreement was signed in the presence of Shri G. Kishan Reddy, Hon'ble Union Minister of Coal and Mines, Govt. of India at New Delhi on 8th July 2026.

Project Specifications

  • Project Type: 4×270 MW (1,080 MW) Thermal Captive Power Plant (CPP)
  • Location: Anugola, Odisha
  • Project Nature: Brownfield capacity addition within NALCO's existing CPP premises
  • Development Approach: Phased manner implementation

Corporate Structure

  • JVC will be incorporated under the Companies Act, 2013
  • Corporate Office: Bhubaneswar
  • Equity Structure: NALCO and NLCIL each hold 50% equity

Commercial Agreements

  • Power Purchase Agreement: 25-year agreement with NALCO for 100% offtake of power
  • Legal Basis: Section 62 of the Electricity Act, 2003
  • Fuel Supply Agreement: Long-term agreement with NLCIL for coal supply
  • Pricing: Coal at Coal India notified prices

Strategic Context and Background

This agreement follows a non-binding Memorandum of Understanding (MoU) signed between NALCO and NLCIL on 14th February 2026 at Chennai, which established the broad framework for collaboration in:

  • Thermal and renewable energy project development
  • Long-term coal supply arrangements

Project Rationale and NALCO Expansion

NALCO is undertaking a 0.5 MTPA Aluminium Smelter expansion at Anugola, Odisha, with commissioning envisaged in 2030-31. This expansion necessitates an additional 800 MW of assured captive power, which the JVC will provide.

Renewable Energy Component

The Company will also pursue 200–250 MW of firm Renewable Energy (RE-RTC) in line with Renewable Consumption Obligation (RCO) norms. NLCIL will extend support through:

  • Long-term Power Purchase Agreements (PPA)
  • Group Captive arrangements from its renewable energy portfolio

Partner Capabilities

NLCIL brings over six decades of experience in:

  • Lignite and coal mining
  • Thermal and renewable power generation
  • Proven project execution capability
  • Assured long-term coal supply, including from its Machhakata coal mine in Odisha, located in proximity to the Anugola site

Corporate Status

Both companies are Navratna Central Public Sector Enterprises (CPSEs) under the Ministry of Mines and Coal, Govt of India.

Official Attendees

Notable attendees at the signing ceremony included:

  • Shri Sanoj Kumar Jha, IAS, Additional Secretary, Ministry of Coal, and CMD-Addl. Charge, NLCIL
  • Shri Brijendra Pratap Singh, CMD, NALCO
  • Shri Vivek Kumar Bajpai, Joint Secretary, Ministry of Mines, Govt of India
  • Shri Jagdish Arora, Director (Projects & Technical), NALCO
  • Shri Abhay Kumar Behuria, Director (Finance), NALCO
  • Dr. Prasanna Kumar Acharya, Director (Finance), NLCIL
  • Senior officials from Ministry of Coal & Mines, NALCO and NLCIL