National Aluminium Company (NALCO) plans to undertake a 500,000 tonne per year expansion at its site in Angul, Odisha.
Commissioning is planned for early 2030.
The total investment is reported to be ₹30,000 crore (approximately USD 3.5 billion), though NALCO has not confirmed the amount.
The expansion will need an additional 800 MW of assured captive power.
To meet this requirement, NALCO has signed a Joint Venture-cum-Shareholders’ Agreement (JVA) with NLC India (NLCIL).
This will see the formation of a 50:50 Joint Venture Company (JVC) to develop a 1,080 MW Thermal Captive Power Plant (CPP) at Angul.
The agreement was executed in the presence of G. Kishan Reddy, Union Minister of Coal and Mines at the Government of India, in New Delhi on July 8th.
Also in attendance were Sanoj Kumar Jha, Indian Administrative Service (IAS), Additional Secretary to the Government of India (Ministry of Coal) and Chairman & Managing Director (CMD) of NLCIL, and Brijendra Pratap Singh, CMD of NALCO.
The JVC will enter into a 25-year Power Purchase Agreement with NALCO for 100% offtake of power under Section 62 of the Electricity Act, 2003, and a long-term Fuel Supply Agreement with NLCIL for coal.
This development follows the non-binding Memorandum of Understanding (MoU) signed between NALCO and NLCIL on 14th February 2026 at Chennai.
This established the broad framework for collaboration in thermal and renewable energy project development, and long-term coal supply arrangements.
In addition, NALCO will pursue 200–250 MW of firm Renewable Energy (RE-RTC) in line with Renewable Consumption Obligation (RCO) norms.
NLCIL will extend support through long-term Power Purchase Agreements (PPA) or Group Captive arrangements from its renewable energy portfolio.
