India's second largest aluminium producer Nalco has received a green signal from the Indonesian government for setting up a Rs 17,000 cr aluminium smelter and captive power project in the country.
"The Indonesian government cleared our FDI proposal in September," the company's Director, Finance, B L Bagra told.
Navratna PSU Nalco had entered into a memorandum of understanding with the government of Indonesia in January this year for setting up a five lakh tonne aluminium smelter and 1,250 Mw captive power plant.
The company had entrusted consultant M N Dastur with the task of doing the feasibility study for the project in April.
After it got enough indications that the project would be viable, Nalco sought clearance of its investment proposal from the Indonesian government in August.
The feasibility report for the proposed project has been completed last month, following which Nalco now plans to float a global tender to rope in consultant for undertaking the detailed project report (DPR).
"The DPR would be taken up by the end of January when the company secures connecting logistics and technical inputs besides details of quality and quantum of coal, which we plan to procure from a local mining company there," Bagra said.
After getting necessary details of coal available in the Indonesian mine, the company would try for a majority stake in the mining company, which has been alloted the property, he added.
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