NLC India Limited
Joint Venture Agreement with National Aluminium Company Limited
Main Body
NLC India Limited has signed a Joint Venture Agreement with National Aluminium Company Limited (NALCO) to incorporate a new Joint Venture Company (JVC). The purpose of the JVC is to develop a 4×270 MW (1,080 MW) coal-based thermal captive power plant at Angul, Odisha. This plant will specifically meet the captive power requirement of NALCO's 0.5 MTPA aluminium smelter expansion project.
The agreement was executed on July 8, 2026. Upon incorporation, NLCIL and NALCO will each hold equity shares in the JVC in a 50:50 ratio. Equity shares shall be issued at the face value of Rs. 10/- each after the incorporation of the JVC.
Key operational agreements include:
- The JVC will execute a 25-year Fuel Supply Agreement (FSA) with NLCIL for coal supply from NLCIL's Machhakata coal mine or any other mines.
- The JVC will execute a 25-year Power Purchase Agreement (PPA) with NALCO for 100% offtake of power under Section 62 of the Electricity Act, 2003.
Both parties will have equal nomination rights on the Board of Directors of the JVC. The parties are related to the promoter/promoter group/group companies, but the transaction does not fall within related party transactions as per the disclosure.
This intimation is made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and specifically references SEBI Circular no. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.