NLC India Limited (NLCIL) has entered into a Joint Venture Agreement with National Aluminium Company Limited (NALCO) to establish a Joint Venture Company (JVC). This JVC will focus on developing a 4x270 MW (1,080 MW) Coal-based Thermal Captive Power Plant located in Angul, Odisha. The primary purpose of this plant is to fulfill the captive power requirements for NALCO's 0.5 MTPA Aluminium Smelter Expansion Project. The agreement stipulates a 50:50 equity participation between NLCIL and NALCO in the JVC. Key terms include a 25-year Fuel Supply Agreement (FSA) for NLCIL to supply coal from its Machhakata mine or other mines, and a 25-year Power Purchase Agreement (PPA) with NALCO for the complete offtake of power generated by the JVC. Equity shares in the JVC will be issued at a face value of ₹10 each. Both NLCIL and NALCO will have equal representation on the JVC's Board of Directors. NALCO is a related party to NLCIL.
