According to reports from CNBC TV18, NLC India announced on Tuesday, September 29, that its board has approved the formation of a 50:50 joint venture with National Aluminium Company (NALCO) to develop a 1,080 MW thermal captive power plant. The proposed joint venture will be incorporated in India as NLC NALCO Power Limited or another name approved by the Ministry of Corporate Affairs, with both companies holding equal stakes and subscribing to equity shares in cash with a face value of ₹10 each. As reported by The Economic Times, the Joint Venture Company will develop a 1,080 MW (4×270 MW) coal-based thermal captive power plant at Angul, Odisha, with the project dedicated to meeting the power needs of NALCO's 0.5 MTPA Aluminium Smelter Expansion Project.
As reported by CNBC TV18, the thermal power project will be developed in four units of 270 MW each and is primarily intended to meet NALCO's captive power requirements. The plant will operate in the thermal power generation sector and will be developed in phases. Additionally, the joint venture will explore opportunities for entering into long-term power purchase agreements for NALCO's renewable energy requirements. According to The Economic Times, the 1,080 MW captive plant directly feeds NALCO's 0.5 MTPA Aluminium Smelter expansion, optimizing cost structures and ensuring resource security for the energy-intensive aluminium smelting process.
The 50:50 joint venture leverages NLC India's expertise in power generation and NALCO's need for reliable captive energy, creating long-term operational synergies. As reported by The Economic Times, this partnership shifts NLC India from a traditional utility supplier to a core infrastructure partner for critical metal producers. By securing a 50% stake in a dedicated 1,080 MW plant, NLC India establishes a locked-in, low-risk off-taker in NALCO, mitigating market volatility risks and ensuring high capacity utilization. The model of shared-capital infrastructure is highly capital-efficient, with NLC India's robust balance sheet backed by Q1 FY27 standalone revenue of ₹2,871.73 crore (up 15.07% YoY) and approved USD 100 million unsecured commercial borrowing.
As reported by CNBC TV18, shares of NLC India ended 0.37% lower at ₹255.75 on Tuesday following the joint venture announcement. The joint venture announcement comes as aluminium producers continue to monitor the outlook for aluminium and alumina prices, with NALCO Chairman-cum-Managing Director Brijendra Pratap Singh having previously indicated that aluminium prices were expected to moderate to $3,100-$3,200 per tonne for the rest of the year after averaging around $3,600-$3,700 per tonne in the April-June quarter. According to The Economic Times, NLC India's operational momentum is backed by its Q1 FY27 standalone revenue growth of 15.07% YoY to ₹2,871.73 crore and EBITDA of ₹1,013.13 crore (up 1.13% YoY).
