Indonesia tops Nalco list for overseas venture

KOLKATA: National Aluminium Company (Nalco) has shortlisted Indonesia as the top country of choice for its maiden overseas venture. If all goes well, the state-owned aluminium major is planning to invest Rs 15,000 crore on setting up a greenfield aluminium smelter and power plant.

“We have held talks with a few countries in the Gulf region, besides Indonesia. But in terms of prospect, Indonesia is ahead of the others at this point,” Nalco chairman and managing director CR Pradhan told ET. The project envisages setting up a 5 lakh tonne smelter, with two streams of 2.5 lakh tonne each and a 1,300 mw power plant. In the first stage, Rs 8,000 crore will be spent on a 2.5 lakh tonne smelter and a 600 mw power project.

Nalco ’s overseas foray is linked to its plan to seek an alternative, cheaper source of fuel to convert its surplus alumina into aluminium. Fuel costs account for nearly 60% of the smelting charges and hence, Nalco has been forced to look beyond Indian shores with its plans for setting up a new smelter. “Indonesia is the only country which has come forward for the project. Gulf countries have failed to provide any assurance of gas supply,” Mr Pradhan added.