NLC India (NSE:NLCINDIA, BOM:513683) agreed to form a joint venture with National Aluminium (NSE:NATIONALUM, BOM:532234) to develop a 1,080 MW coal-based thermal captive power plant in Angul in Odisha, India, according to a Wednesday filing to the Indian stock exchanges.
The 4×270 MW power plant will be set up to meet the captive power requirement of National Aluminium's 0.5 million tons per annum aluminium smelter expansion project.
The joint venture, which will have equal equity participation from the two companies, will execute a fuel supply agreement with NLC India from its Machhakata coal mine or any other mines for 25 years.
It will also sign a 25-year power purchase pact with National Aluminium for 100% offtake of power.