Nalco signs pact with NPCIL

Bhubaneswar: National Aluminium Company Limited (Nalco) has entered into an agreement with the Nuclear Power Corporation of India Limited (NPCIL) to set up nuke power plants within the country in a joint venture, official sources said.

"Both the state-run companies have already selected Kakrapar units 3 and 4, having capacity of 700 MW each, in Gujarat as their first joint venture company for establishment of Nuclear Power Plants in India," an official said on Thursday adding that construction work has already started.

Nalco has plans for diversification to power sector and to harness the clean energy, Nalco CMD B L Bagra said on Thursday after the company signed the JV agreement Wednesday at Mumbai.

"Signing of the JV agreement is considered as the foundation stone for formation of the JV company and is a milestone in Nalco`s endeavour to diversify in power sector," Bagra said.

Under the jv agreement, Nalco would have 49 per cent equity stake, out of which 26 per cent equity could be contributed now. Later, the equity share would be enhanced to 49 per cent. NPCIL`s share was 51 per cent.

Nalco`s 50 mw wind power project is at an advanced stage of construction in Andhra Pradesh, Bagra said adding that the company has also plans to bid for 4,000 mw Ultra Mega Power Plant (UMPP) in Odisha.