New Delhi: State-owned National Aluminium Company Ltd (Nalco) on Wednesday announced entering into a joint venture agreement with NLC India Ltd (NLCIL) to set up a 1,080 MW thermal captive power plant in Odisha.
The joint venture-cum-shareholders' agreement (JVA) has been signed for the formation of a 50:50 joint venture company to develop a 4x270 MW (1,080 MW) thermal captive power plant in Anugola, Odisha, Nalco said in a regulatory filing.
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The plant will supply captive power to Nalco's 0.5 MTPA aluminium smelter expansion project.
Nalco said the collaboration will also explore long-term arrangements for 200-250 MW of firm renewable energy (RE-RTC) and secure long-term coal supply agreements.
The JV entity will "execute a 25-year Power Purchase Agreement (PPA) with NALCO for 100 per cent offtake of power under Section 62 of the Electricity Act, 2003, and a Fuel Supply Agreement (FSA) with NLCIL for coal at Coal India notified prices, the filing said.
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Nalco is a 'Navratna' company under the Ministry of Mines. It is one of the country's largest bauxite, alumina, aluminium and power complex. Currently, the Centre owns 51.28 per cent equity share in Nalco.
The company has its captive Panchpatmali bauxite mines for the pit-head alumina refinery at Damanjodi in Koraput district of Odisha and an aluminium smelter, captive power plant and captive coal mines in Anugola.
