New Delhi: State-owned Navratna PSU National Aluminium Company Ltd (Nalco) said on Wednesday it has signed a joint venture and shareholders’ agreement with NLC India Ltd (NLCIL) to form a 50:50 JV that will develop a 1,080 MW (4×270 MW) captive thermal power plant at Anugola, Odisha. The plant will provide power to Nalco’s 0.5 million tonnes per annum aluminium smelter expansion.

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The JV will also explore long-term arrangements for 200–250 MW of firm renewable energy (RE-RTC) and secure coal supplies through long-term contracts. The new entity will enter a 25-year power purchase agreement (PPA) with Nalco for 100% offtake under Section 62 of the Electricity Act, 2003, and execute a fuel supply agreement (FSA) with NLCIL for coal priced at Coal India–notified rates, the company said in a regulatory filing.

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Nalco, a 'Navratna' central public sector enterprise under the Ministry of Mines, is one of India’s largest integrated bauxite, alumina, aluminium and power complexes. The Centre holds 51.28% equity in the company. Nalco’s operations include captive Panchpatmali bauxite mines and an alumina refinery at Damanjodi, Koraput, and an aluminium smelter, captive power plant and coal mines at Anugola.

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