National Aluminium Company Ltd (Nalco) will invest around $4.5 billion to set up a 4.5 million tonne aluminium smelter and a 1250 MW coal-based power plant in Indonesia's East Kalimantan province.
Nalco today signed a memorandum of understanding (MoU) with the government of East Kalimantan Province of Indonesia to provide technical cooperation for the two projects.
Nalco executive director P K Mohaptra and the governor of East Kalimantan, Awang Faroek signed the MoU on the two projects in the presence of visiting commerce and industry minister Anand Sharma and the Indonesian trade minister Mari Elka Pangestu.
Under the MoU, state-owned Nalco will set up a joint venture with local coalmines, in which Nalco will hold a majority 75 per cent stake and a local firm the remaining 25 per cent.
The project is expected to be completed in four years. Nalaco will secure raw material for the aluminium smelter project from its India operations while local participant in Indonesia will ensure regular supply of coal for the projects.
Sharma, who is leading a delegation of senior government officials and industry body CII to Indonesia, held a number of meetings with key ministers in Indonesia.
Indian business houses, including the Tatas, Anil Dhirubhai Ambani Group and the Adani Group, have invested a total of around $20 billion in sectors like steel, power and coal in Indonesia.