Nalco And NLC India To Build 1,080 MW Captive Plant

13 Jul 2026 CW Team

The companies said NLC India will leverage its mining expertise and coal resources, including production from the Machhakata coal mine in Odisha near the Anugola project site, to ensure uninterrupted fuel supply over the plant's operational life. The long-term arrangement is expected to assure power availability for Nalco while providing a stable revenue stream for the joint venture. The structure aims to reduce dependence on market purchases and to enhance competitiveness through lower and predictable power costs.

Power accounts for nearly 35-40 per cent of aluminium production costs, making energy security a key determinant of competitiveness, Nalco noted. The captive plant will reduce exposure to fluctuations in electricity tariffs and support manufacturing cost stability. The partnership also aligns with Nalco's clean energy roadmap, under which the company plans to procure 200-250 MW of firm renewable energy to meet renewable consumption obligation norms and to reduce the carbon footprint of production.

The agreement was signed in New Delhi in the presence of the Union Coal and Mines Minister G Kishan Reddy, the additional secretary in the ministry of Coal and the in-charge chairman and managing director of NLC India, and the chairman and managing director of Nalco. It follows an earlier non-binding memorandum of understanding that outlined collaboration in thermal and renewable energy projects and long-term coal supply. The partners said the venture will provide assured power for Nalco and a stable long-term revenue source for the joint venture.

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Nalco and NLC India have agreed to form a joint venture to build a 1,080 megawatt (1,080 MW) captive power plant in Odisha with an investment of Rs 120 billion (Rs 120 bn). Nalco said the joint venture company will enter into a 25-year power purchase agreement with Nalco for 100 per cent of the electricity generated and will execute a long-term fuel supply agreement with NLC India for coal at Coal India notified prices. The project is intended to secure baseload power for Nalco's aluminium operations and strengthen energy self-sufficiency. The companies said NLC India will leverage its mining expertise and coal resources, including production from the Machhakata coal mine in Odisha near the Anugola project site, to ensure uninterrupted fuel supply over the plant's operational life. The long-term arrangement is expected to assure power availability for Nalco while providing a stable revenue stream for the joint venture. The structure aims to reduce dependence on market purchases and to enhance competitiveness through lower and predictable power costs. Power accounts for nearly 35-40 per cent of aluminium production costs, making energy security a key determinant of competitiveness, Nalco noted. The captive plant will reduce exposure to fluctuations in electricity tariffs and support manufacturing cost stability. The partnership also aligns with Nalco's clean energy roadmap, under which the company plans to procure 200-250 MW of firm renewable energy to meet renewable consumption obligation norms and to reduce the carbon footprint of production. The agreement was signed in New Delhi in the presence of the Union Coal and Mines Minister G Kishan Reddy, the additional secretary in the ministry of Coal and the in-charge chairman and managing director of NLC India, and the chairman and managing director of Nalco. It follows an earlier non-binding memorandum of understanding that outlined collaboration in thermal and renewable energy projects and long-term coal supply. The partners said the venture will provide assured power for Nalco and a stable long-term revenue source for the joint venture.

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