NLC India (NLCIL) and the National Aluminium Company (NALCO) have entered into a joint venture agreement (JVA) to develop a 1.08GW coal-based captive thermal power plant at Angul in the eastern Indian state of Odisha.
The companies signed the agreement in New Delhi, with officials from the Ministry of Coal and the Ministry of Mines in attendance.
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The facility will comprise four 270MW units.
Both NLCIL and NALCO will hold equal ownership stakes in the joint venture (JV).
The JV will handle the financing, construction, ownership and operation of the power plant.
The additional power capacity is intended to meet the higher energy demand from NALCO’s aluminium smelter expansion in Angul.
The project will add 500,000 tonnes per annum of capacity and is due to be commissioned in 2030–31.
The project aims to provide a reliable long-term power supply to support the region’s planned industrial growth.
NALCO’s expansion is expected to require an additional 800MW of assured captive power.
The JV will also procure 200–250MW of renewable energy to meet Renewable Consumption Obligation requirements.
NLCIL will support this portion through long-term power purchase agreements or group captive arrangements from its renewable energy portfolio.
The company has experience in coal mining and power generation and will secure coal supply from its nearby Machhakata coal mine, close to the Angul site.
In February this year, NLCIL and NALCO signed an agreement to jointly pursue thermal and renewable energy projects totalling 1.2GW.
