NALCO’s foreign projects stuck in policy turmoil
National Aluminium Company Ltd’s (NALCO) greenfield projects in Indonesia and Iran are facing delays due to political and policy turmoil in those countries according to the company’s CMD CR Pradhan.
Though Indonesian law does not allow foreign companies to have a stake in mineral exploration, the NALCO project would be developed in a joint venture with a local partner who will have the control of the rights of coal and bauxite mines, he said.
Last year, NALCO had inked an agreement with the government of Indonesia for setting up a 5-lakh-tonne aluminium smelter and a 1,250 MW captive power unit at an investment of about Rs 17,000 crore. In Iran, NALCO has plans to set up a 3.30-lakh-tonne smelter in a joint venture with the Iranian firm ALPHA at an investment of Rs10,000 crore. But, the company is seeking a better political climate before it submits the project plan to the Iranian government for approval.