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NALCO has signed a deal with NLC India Ltd (NLCIL) to collaborate on a 1,080 MW thermal captive power project and renewable energy development.
In simple terms, a 1,080 MW thermal captive power project means a large power plant that will generate electricity mainly for NALCO’s own factories instead of buying power from outside.
For context, NALCO is a Navratna PSU and one of India’s key aluminium producers. Power is a major cost in aluminium making, so securing steady and affordable electricity is critical.
What’s going on: the agreement creates a framework for long-term power tie-ups and coal supply arrangements. It also opens the door for future joint project development, covering both thermal and green energy solutions.
Why it matters: aluminium production needs huge amounts of electricity. If power is expensive or unreliable, profits get hit.
By partnering with NLCIL for a captive power project and coal tie-ups, NALCO reduces its dependence on outside suppliers, controls costs better, and protects margins in the long run.
