NLC India Gains After Signing 1,080 MW Thermal Power JV with NALCO

Shares of NLC India climbed nearly 2% on 9 July after the company signed a Joint Venture-cum-Shareholders’ Agreement with National Aluminium Company Limited (NALCO) to establish a 50:50 joint venture for developing a 1,080 MW (4×270 MW) captive thermal power plant at Angul, Odisha. 

The strategic project aims to strengthen NALCO’s long-term power security while expanding NLC India’s presence in the thermal power sector. The joint venture will set up the plant within NALCO’s existing captive power complex at Angul, with the company expected to meet the future energy requirements of NALCO’s aluminium operations.

As per the agreement, both companies will hold equal ownership in the new entity. The joint venture will execute a 25-year Power Purchase Agreement (PPA), under which NALCO will procure 100% of the electricity generated. 

Meanwhile, NLC India will ensure a steady fuel supply through a long-term coal supply arrangement at Coal India notified prices, providing cost stability for the project. The collaboration is expected to improve operational efficiency and support the expansion plans of both public sector enterprises.

The development comes after several key regulatory updates from the companies over the past six months. In April 2026, NALCO reported strong annual financial results, approved the winding up of a commercially unviable joint venture, and continued to focus on improving operational efficiency and capital allocation. 

More recently, both companies completed regulatory formalities leading up to the signing of the new thermal power venture, highlighting their continued focus on strategic infrastructure investments.

Following the announcement, at 1:16 pm, NLC India was trading around Rs 302.15, gaining 2.68%, while NALCO traded at Rs 350.90, with marginal gains of 0.33% despite remaining in focus after the announcement. 

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