The proposed joint venture, which will be incorporated in India as NLC NALCO Power Limited or another name approved by the Ministry of Corporate Affairs, will develop the power project in phases, NLC India said in a regulatory filing.
The plant will comprise four units of 270 MW each and is primarily intended to meet NALCO’s captive power requirements.
The joint venture will also explore opportunities for entering into long-term power purchase agreements for NALCO’s renewable energy requirements, the company said.
DIPAM approval received
The proposed joint venture is subject to statutory and administrative approvals and compliance with applicable guidelines issued by the Department of Investment and Public Asset Management (DIPAM).
NLC India said the Ministry of Coal, through a letter dated September 8, 2026, had conveyed DIPAM’s approval for the formation of the joint venture with NALCO.
The proposed entity will operate in the thermal power generation sector, with NLC India and NALCO each holding a 50% stake.
Both companies will subscribe to the joint venture’s equity shares in cash, with the shares carrying a face value of ₹10 each.
Shares of NLC India ended 0.37% lower at ₹255.75 on Tuesday.
What NALCO said about aluminium prices
The joint venture announcement comes as aluminium producers continue to monitor the outlook for aluminium and alumina prices.
On August 17, NALCO Chairman-cum-Managing Director Brijendra Pratap Singh said aluminium prices were expected to moderate to $3,100-$3,200 per tonne for the rest of the year, after averaging around $3,600-$3,700 per tonne in the April-June quarter.
Prices had already cooled to around $3,270 per tonne at the time, and Singh expected them to settle in the $3,100-$3,200 range for the remainder of the year.
The surge in aluminium prices during the first quarter was attributed to supply disruptions linked to the Strait of Hormuz, which affected output at Middle Eastern smelters and disrupted global supply chains. With some of those pressures easing, prices have since moderated, although Singh did not expect a sharp decline.
On alumina, Singh said the market was expected to have a surplus of around 1.6 million tonnes in the current financial year, which could keep prices around $350 per tonne for the remainder of the year.
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