National Aluminium Company Limited (NALCO) and NLC India Limited (NLCIL) have signed a Joint Venture-cum-Shareholders' Agreement to establish a company for developing a 1,080 MW captive thermal power plant at Anugola, Odisha, as per an exchange filing dated July 8, 2026.
The venture will be owned equally by the two state-run companies and will develop four generating units of 270 MW each. The agreement was signed on July 8 in New Delhi.
The proposed power plant is linked to NALCO's aluminium smelter expansion at Anugola. The company is adding 0.5 million tonnes per annum of aluminium production capacity, with commissioning planned in 2030-31.
The expansion is expected to increase power demand by about 800 MW. To meet this requirement, the additional thermal capacity will be created within the existing captive power plant complex in a phased manner.
The joint venture company will be incorporated under the Companies Act, 2013. Its registered office will be located in Chennai, while the corporate office will operate from Bhubaneswar.
NALCO and NLC India will each hold a 50% equity stake. Under the agreement, the venture will enter into a 25-year Power Purchase Agreement, with NALCO purchasing the entire electricity generated from the project.
Fuel for the thermal plant will be supplied by NLC India through a long-term Fuel Supply Agreement at Coal India notified prices. The company is to source coal from its Machhakata coal mine in Odisha, located near the project site.
Separately, NALCO plans to procure 200-250 MW of firm renewable energy to meet Renewable Consumption Obligation norms, with NLC India supporting these requirements through long-term power purchase or group captive arrangements.
The latest agreement builds on the memorandum of understanding signed between the two companies on February 14, 2026. That understanding covered cooperation in thermal and renewable energy projects and long-term coal supply.
The joint venture agreement now sets out the ownership pattern, power offtake arrangements, and fuel supply framework for the proposed project.
As of July 9, 2026, 1:18 pm, NLC India Ltd share price was trading at ₹302.25, up 2.72%, while National Aluminium Company Ltd (NALCO) share price was trading at ₹350.55, up 0.23%.
The proposed project is to meet the additional power requirement of NALCO's expanded smelter capacity while establishing a long-term structure for electricity generation and coal supply.
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Published on: Jul 9, 2026, 1:53 PM IST
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