The proposed joint venture company will be owned equally by NALCO and NLC India, with both companies holding 50% equity after its incorporation.
The captive power plant will meet the power requirement of NALCO’s 0.5 MTPA aluminium smelter expansion project. The partners will also explore long-term arrangements for 200-250 MW of firm renewable energy (RE-RTC) and long-term coal supply.
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Under the agreement, the JVC will execute a 25-year Power Purchase Agreement (PPA) with NALCO for 100% of the power offtake under Section 62 of the Electricity Act, 2003. It will also enter into a Fuel Supply Agreement (FSA) with NLC India for coal at Coal India’s notified price.
NALCO said it currently holds no shareholding in the proposed entity, which will be incorporated after the agreement. Both companies will have equal representation on the board of the joint venture.
The company said NALCO and NLC India are government companies under the administrative control of the Ministry of Mines and the Ministry of Coal, respectively. It also stated that the transaction is not a related-party transaction, as transactions between two government companies are exempt under the Companies Act, 2013.
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Last month, National Aluminium Company expects revenue to rise to around ₹19,000 crore in FY27 as stable aluminium prices, higher output from its new alumina refinery and cost normalisation are expected to support earnings.
Chairman-cum-Managing Director Brijendra Pratap Singh said the company expects aluminium prices to settle at around $2,900-3,000 per tonne, as demand remains healthy despite concerns over additional global supply.
Singh said, “The LME inventories are low, the demand is there, and the disruptions in the alumina smelters in refineries, which have happened, are going to come in next maybe six months, seven months. So the demand-supply gap is there. Our expectation is that the prices will stabilise somewhere around $2,900-3,000.”
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Shares of NLC India Ltd closed at ₹294.10, down ₹8.15, or 2.70%, on the BSE, while National Aluminium Company Ltd (NALCO) shares settled at ₹349.75, up ₹7.25, or 2.12%.
