en.Wedoany.com Reported - NLC India (NLCIL) and National Aluminium Company (NALCO) have signed a joint venture agreement to construct a 1.08-gigawatt coal-fired captive thermal power plant in Angul, Odisha, eastern India. The agreement was signed in New Delhi, with officials from the Ministry of Coal and the Ministry of Mines attending the ceremony.

The plant will consist of four 270-megawatt units. NLCIL and NALCO will each hold equal equity stakes in the joint venture, responsible for the financing, construction, ownership, and operation of the plant. The additional power capacity is intended to meet the increased energy demand from NALCO's expansion of its aluminum smelter in Angul. This expansion project will add 500,000 tonnes of annual production capacity and is scheduled to commence operations between 2030 and 2031. The project aims to provide a reliable long-term power supply to support the planned industrial growth in the region.

NALCO's expansion is expected to require an additional 800 megawatts of assured captive power. To meet renewable energy consumption obligations, the joint venture will also procure 200 to 250 megawatts of renewable energy. NLCIL will support this demand through long-term power purchase agreements from its renewable energy portfolio or group captive arrangements. The company, with extensive experience in coal mining and power generation, will secure coal supply from its Machhakata coal mine, located near the Angul site.

In February this year, NLCIL and NALCO signed an agreement to jointly advance thermal and renewable energy projects totaling 1.2 gigawatts.