NALCO looking to set up a unit in Indonesia

The Aluminum industry in India has not seen much action in recent times except the government divesting stakes in Aluminium makers Madras Aluminum and Balco to Sterlite, and INDAL to Aditya Birla Group.

But now the only government owned Aluminium maker National Aluminium Company or NALCO has big plans not just in India but overseas.

"We are setting up a 120 MW power plant and 0.5 million tonnes Aluminium smelter plant in Jarsugra Orissa and also a similar smelter plant and 1250 MW power plant in Indonesia. Thus, there are the two Greenfield projects we are currently looking at,” said BL Bagra, director (finance) at NALCO.

Each of these integrated projects will entail  an investment of around Rs 18,000 crore each so the big question is how does NALCO plan to fund these projects and when will the projects officially take off?

"NALCO is a debt free company and by 2013, when the work will start for these projects we can easily arrange funds thorough debt for these projects,” said Bagra.

With demand for Aluminium set to grow by double digits spurred by demand from the auto, power and packaging sectors, NALCO's tie-up with Indonesian company ET Antam seems to be well timed.

But the decision to make the Indonesian acquisition still needs government  clearance