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NALCO aluminum project in Iran remains a non starter
Published on Sun, 24 Jul 2011 560 times viewed
BS reported that NALCO’s plans to spread its arms across the globe aren\'t taking shape the way it had expected them to. The company\'s INR 10,000 crore project to set up 310,000 tonne aluminum smelter and 750 MW power plant in Iran continues to languish due to paucity of funds

Mr BL Bagra acting CMD & finance director of NALCO said that the geo political situation in Iran is not favorable due to which we have not been able to proceed with the financial closure for the project.

The project was announced in 2007 and the total project cost then was INR 8,000 crore which now stands in excess of INR 10,000 crore. NALCO had planned to ship bauxite from its Indian mines to Iran and convert it into aluminum. It had signed a MoU with Iran\'s Kerman Development Organization but an agreement to form JV hasn\'t been floated yet.

In the meantime, NALCO had held talks with various financial companies, including the Islamic Bank of Indonesia which had shown interest in financing the project. The talks however, did not succeed.

This is not the first overseas project of NALCO to hit a roadblock. Around the same time when the Iran project was announced, the company spoke of setting up aluminum smelters in South Africa and Saudi Arabia. The African project was INR 15,000 crore, half a million tonne smelter and 1,250 MW power plant.

The Saudi Arabian project was shelved at the planning stage and no details on the proposed capacities were given. The company reasoned lack of coal linkages for its decision.

Of the 4 international projects announced, only the Indonesian smelter is close to getting started. NALCO is expected to choose its coal partner this month. It is looking to set up 0.5 million tonne aluminum smelter and a 1,250 MW power plant at a cost of USD 4 billion.

(Sourced from www.business-standard.com)

Posted By : admin on Sun, 24 Jul 2011 | 560 times viewed
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