NLC India Ltd to form 50:50 JV with NALCO for power plant

NLC India Ltd announced its Board of Directors has approved the incorporation of a Joint Venture Company (JVC) with National Aluminium Company Limited (NALCO). The JVC will have a 50:50 equity participation between NLC India and NALCO. The primary objective is to develop a 1080 MW (4 X 270 MW) Thermal Captive Power Plant in phases to meet NALCO's captive power requirements. The company will also explore options for long-term Power Purchase Agreements (PPAs) for NALCO's renewable energy needs. The JVC, to be named NLC NALCO Power Limited or similar, will be incorporated in India. Ministry of Coal has already conveyed DIPAM's approval for this JVC formation. Shares in the JVC will be acquired by cash subscription at face value of Rs. 10/- each.