NALCO Share Price Falls After Signing JV With NLC India for 1,080 MW Thermal Power Project; Should You Buy?

National Aluminium Company Ltd (NALCO) is back in investors' spotlight after taking a major step towards strengthening its long-term power security. The state-run miner and metal producer has partnered with NLC India Ltd, another government-owned enterprise under the Ministry of Coal, to develop a 1,080 MW captive thermal power plant in Odisha.

NALCO Share Price Today on NSE

At around 10:52 AM on July 9, NALCO shares were trading at Rs 346.70 on the NSE, down 0.87% from the previous close. The stock opened at Rs 350.10, touched an intraday high of Rs 351.80, and slipped to a low of Rs 341.90 during the session. Meanwhile, NLC India shares gained nearly 2% after investors reacted positively to the announcement of the new power venture.

NALCO, NLC India Sign JV to Build 1,080 MW Captive Power Plant

NALCO informed stock exchanges that it has signed a Joint Venture-cum-Shareholders' Agreement (JVA) with NLC India to establish a 50:50 joint venture company for setting up a 1,080 MW captive thermal power plant at Angul, Odisha.

The proposed facility will comprise four generating units of 270 MW each. Once incorporated, both public sector companies will own equal equity in the new entity and have equal representation on its board.

The power project has been planned specifically to meet the electricity requirements of NALCO's 0.5 million tonnes per annum aluminium smelter expansion at Angul.

By developing its own captive power facility, NALCO aims to secure a stable source of electricity for its expanding operations while reducing dependence on external power purchases. The project is also expected to provide greater cost visibility over the long term, an important factor in a commodity business where margins often fluctuate with global metal prices.

For investors, the agreement signals NALCO's continued focus on strengthening its integrated manufacturing operations while supporting future capacity growth.

NALCO-NLC India JV to Sign 25-Year Power Purchase Agreement for Captive Power Supply

Under the agreement, the proposed joint venture company will sign a 25-year Power Purchase Agreement (PPA) with NALCO, ensuring that the entire electricity generated by the plant is supplied exclusively to the aluminium producer.

The tariff for the project will be determined under Section 62 of the Electricity Act, 2003, subject to approval by the relevant electricity regulatory authority.

To ensure uninterrupted fuel availability, the joint venture will also enter into a long-term Fuel Supply Agreement (FSA) with NLC India. Coal for the plant is expected to be supplied at Coal India's notified prices, providing greater certainty over fuel costs.

In addition, both companies intend to explore long-term arrangements for 200-250 MW of round-the-clock renewable energy, reflecting efforts to complement conventional power generation with cleaner energy sources wherever feasible.

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