Delhi, July 9: Navratna CPSU, National Aluminium Company Limited (Nalco) and NLC India Limited (NLCIL) signed a Joint Venture Agreement (JVA) on Wednesday to set up a 4×270 MW (1,080 MW) Thermal Power Plant (CPP) in the CPP premises in Odisha’s Anugola district.

The agreement was executed in the presence of G. Kishan Reddy, Union Minister of Coal & Mines at New Delhi in presence of the Nalco and NLCIL authorities.

Sanoj Kumar Jha, Additional Secretary, Ministry of Coal, and CMD-Addl. Charge, NLCIL, Brijendra Pratap Singh, CMD, Nalco, Vivek Kumar Bajpai, Joint Secretary, Ministry of Mines, Jagdish Arora, Director (Projects & Technical), Abhay Kumar Behuria, Director (Finance), Nalco, Dr. Prasanna Kumar Acharya, Director (Finance), NLCIL along with other senior officials from Ministry of Coal & Mines, NALCO and NLCIL were notably present on the occasion.

The JVC will be incorporated under the Companies Act, 2013, with its Registered Office at Chennai and Corporate Office at Bhubaneswar. Nalco and NLCIL each will hold 50% equity.

The JVC will enter into a 25-year Power Purchase Agreement with the Nalco for 100% offtake of power under Section 62 of the Electricity Act, 2003, and a long-term Fuel Supply Agreement with NLCIL for coal procurement at Coal India notified prices.

This agreement marks a significant milestone in the strategic partnership between the two Navratna Central Public Sector Enterprises (CPSEs), under the Ministry of Mines and Coal, Govt of India.

It may be noted that this development follows the non-binding Memorandum of Understanding (MoU) signed earlier between NALCO and NLCIL on 14th February 2026 at Chennai, which established the broad framework for collaboration in thermal and renewable energy project development, and long-term coal supply arrangements.

It may be mentioned that NALCO as a leading manufacturer of alumina and aluminium in the country is undertaking a 0.5 MTPA Aluminium Smelter expansion at it Anugola plant with commissioning envisaged in 2030-31, which necessitates an additional 800 MW of assured captive power.

The recent venture with the NLCIL will meet this requirement. The Company will also pursue 200–250 MW of firm Renewable Energy (RE-RTC) in line with Renewable Consumption Obligation (RCO) norms, with NLCIL extending support through long-term Power Purchase Agreements (PPA) or Group Captive arrangements from its renewable energy portfolio.

NLCIL, a Navratna CPSE under the Ministry of Coal with over six decades of experience in lignite and coal mining with production of thermal & renewable power, brings proven project execution capability and assured long-term coal supply from the Machhakata coal mine, that’s very close to the proposed project sites.