Indonesia has granted permission to India’s second largest aluminium producer National Aluminium Company Limited (NALCO) to set up a Rs. 17,000 crore aluminium smelter and captive power project in the country.

Announcing the move, NALCO Director of Finance, B L Bagra said that it had entered into a memorandum of understanding (MoU) 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 MN Dastur with the task of doing the feasibility study for the project in April.

The feasibility report for the proposed project has been completed in October, 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, Bagra informed.

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 allotted the property.