NEW DELHI: Close on the heels of Hindalco's move to take over US-based Novelis, public sector National Aluminium (Nalco) has said that it is in advanced state of negotiations to set up an aluminium smelter in the Gulf region at an investment of Rs 15,000 crore.
"Talks are on with Dubai, Qatar, Oman, Bahrain and other countries for setting up a greenfield smelter. The details are likely to be finalised soon," Nalco chairman and managing director C R Pradhan said. It is understood that the state run aluminium major would enter into joint venture with government companies of Gulf countries for its overseas venture.
"Money is not the problem, we are only looking for partnership with the government or with the government-run firms for joint ventures,"he said after presenting a dividend cheque (second interim dividend for 2006-07) of Rs 84 crore to mines minister Sis Ram Ola.
Mr Pradhan said that while Nalco has assured supply of alumina, the overseas investment would only be made in countries where gas-based power is available at a cheaper price.
The PSU has cash reserve of Rs 4,000 crore. It can raise around Rs 40,000 crore from financial institutions and can easily manage the required capital for the project, said an official source.Meanwhile, Nalco is expected to close financial year 2006-07 with about 60% jump in net profit to between Rs 2,300 and Rs 2,400 crore.
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