NLC India’s stock slid 0.37% to ₹255.75 on Tuesday after the board signed off on a 50:50 joint venture with NALCO to construct a 1,080‑MW thermal captive power plant. The move came amid a broader push by aluminium producers to hedge against volatile power costs.
The JV, slated to be incorporated as NLC NALCO Power Limited, will roll out the project in four 270‑MW phases, with the first unit expected to go live in 2025. The plant is earmarked primarily for NALCO’s captive needs, but the partners plan to pursue long‑term power purchase agreements for renewable sources.
Both NLC India and NALCO will subscribe to the new entity’s equity at a ₹10 face value per share, paying fully in cash. The formation has already received statutory clearance from the Ministry of Coal and approval from DIPAM, easing the regulatory path. Analysts observe that the cash outlay will likely tighten liquidity in the coming quarter but could reduce future energy costs.
The announcement comes as aluminium prices are expected to moderate to $3,100‑$3,200 per tonne for the rest of the year, after peaking at $3,600‑$3,700 in the April‑June quarter. NALCO’s chairman, Brijendra Pratap Singh, said the supply surplus in alumina could keep prices near $350 per tonne. Investors will watch whether the power JV helps offset the cost impact of these commodity swings.
Forward guidance is still pending; the companies have not issued earnings forecasts, but the JV’s completion timeline and potential cost savings will be key to future analyst revisions.