NALCO considering alternative site for Indonesia project

India's state-run aluminium producer National Aluminium Co Ltd (NALCO) is considering an alternative site for its $4-billion Indonesia project, which was earlier planned to be set up in South Sumatra province.

India's state-run aluminium producer National Aluminium Co Ltd (NALCO) is considering an alternative site for its $4-billion Indonesia project, which was earlier planned to be set up in South Sumatra province.

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"Although a site in the South Sumatra province was selected for the project, the Indonesian government has yet to award the concession of the port and rail," NALCO director (finance) BL Bagra said.

NALCO had last year signed a deal with the Indonesian government for setting up a 500,000-tonne smelter and a 1,250-MW captive power plant.

Construction works at the project site were expected to start in 2010.

"The site was selected with an assurance by the local government that they will award the concession of the port and rail. But they are not able to do that yet," Bagra said.

NALCO is now considering Kalimantan area of Indonesia to set up the plant.

"We are exploring this site. Pre-visibility study of this location just completed two weeks ago," Bagra said.

"We hope within next six months, we will be able to finalise either South Sumatra or Kalimantan."