Nalco, NLCIL Join Hands to Establish 1,080 MW Captive Power Facility in Odisha.

State-owned National Aluminium Company Ltd (Nalco) recently said it has signed a joint venture-cum-shareholders' agreement with NLC India Ltd (NLCIL) to establish a 1,080 MW thermal captive power plant in Odisha to support its aluminium smelter expansion.

According to a regulatory filing, the agreement provides for the formation of a 50:50 joint venture company to develop the 4x270 MW thermal captive power plant at Angul, Odisha.

The proposed power plant will cater to the electricity requirements of Nalco's 0.5 million tonnes per annum (MTPA) aluminium smelter expansion project. As part of the collaboration, the two companies will also explore long-term arrangements for 200-250 MW of round-the-clock renewable energy and secure long-term coal supply agreements.

The joint venture company will execute a 25-year Power Purchase Agreement (PPA) with Nalco for the entire power generated by the project under Section 62 of the Electricity Act, 2003. It will also enter into a Fuel Supply Agreement (FSA) with NLCIL for coal supplies at Coal India-notified prices.

Nalco, a Navratna public sector enterprise under the Ministry of Mines, is among India's largest integrated producers of bauxite, alumina, aluminium and power. The Central government holds a 51.28% stake in the company.

Nalco operates the Panchpatmali bauxite mines that feed its alumina refinery at Damanjodi in Odisha's Koraput district. The company also runs an aluminium smelter, a captive power plant and captive coal mines at Angul in the state.