Nalco’s Rs27k cr foreign projects may face delay

Nalco’s Rs27k cr foreign projects may face delay
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First Published: Thu, Jan 15 2009. 03 51 PM IST
Updated: Thu, Jan 15 2009. 03 51 PM IST
By PTI
New Delhi: The Rs27,000-crore overseas projects of state-run aluminium producer Nalco may take some time to take-off as the company is yet to attain financial closure amid the global economic slowdown.
“Commencement of the projects may take some time as we have to attain financial tie-ups, after which the government will give its approval. Once started we will be able to complete them in 32-36 months,” Nalco CMD C R Pradhan told PTI.
For the proposed projects in Indonesia and Iran, the company is yet to achieve financial tie-up and is presently holding talks within the company to secure finances, he said.
Besides Indonesia and Iran, the company’s proposed aluminium smelter in South Africa is bearing the brunt of global economic slowdown as aluminium prices have plummeted up to 60% from the peak levels of the last year.
“In South Africa, we and the party we are talking to for the project are going slow due to slowdown,” Pradhan said.
Last year, Navratna PSU Nalco had inked an agreement with the government of Indonesia for setting up a five-lakh tonne aluminium smelter and a 1,250 MW captive power unit at an investment of about Rs17,000 crore.
The company last month announced selling 24% stake in the new project to Dubai-based Rak Minerals and Metals Investments, which would construct port and railway corridor in the proposed area.
In Iran, it has plans to set up a 3.30-lakh tonne smelter in a joint venture with Iranian firm ALPHA at an investment of Rs10,000 crore. It also plans to set up an aluminium smelter in South Africa, but the project is in a nascent stage.
As the proposed projects are set to be delayed, Nalco apprehends their costs to escalate or subside, depending on the market conditions. “Project cost may go up later or it may also come down. We will see to it,” Pradhan said.
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First Published: Thu, Jan 15 2009. 03 51 PM IST