Nalco, NLC India to Build ₹12,000 Crore Captive Power Plant in Anugola, Odisha
State-owned National Aluminium Company Ltd (Nalco) has partnered with NLC India Ltd (NLCIL) to set up a 1,080 MW captive thermal power plant at Odisha's Anugola, at an investment of around ₹12,000 crore. The plant will secure power for Nalco's aluminium capacity expansion.
The two Navratna public-sector companies signed a joint venture-cum-shareholders' agreement to establish a 50:50 joint venture that will develop a 4x270 MW captive thermal power plant within Nalco's existing captive power complex at Anugola, formerly Angul.
The project supports Nalco's 0.5 million tonne per annum expansion of its aluminium smelter at Anugola, estimated at ₹30,000 crore and scheduled for commissioning in 2030-31. The expansion will require an additional 800 MW of uninterrupted captive power. The new power station will be developed in phases as a brownfield expansion within Nalco's existing power plant premises, allowing use of existing land, infrastructure and utilities.
Under the agreement, the joint venture will enter into a 25-year power purchase agreement with Nalco for the plant's entire output, along with a long-term fuel supply agreement with NLCIL for coal at Coal India notified prices. NLC India is expected to draw on its mining resources, including its nearby Machhakata coal mine, to support fuel supply.
The partnership also covers Nalco's clean energy plans, with NLC India to facilitate procurement of 200-250 MW of firm renewable energy through long-term power purchase agreements or group captive arrangements, supporting Nalco's renewable consumption obligation norms. The agreement follows an earlier non-binding MoU between the two companies outlining the broader framework for thermal, renewable, and coal supply collaboration.