The Hindu Business Line : Nalco in talks with Islamic bank for Iran project

NEW DELHI: The State-owned Nalco is in talks with an Islamic bank in Indonesia for a loan to revive its Rs 10,000-crore Iran project, which was put on hold due to the aluminium maker's inability to secure finances for the venture.

The company plans to set up a 3.3-lakh tonne aluminium smelter and 800-MW captive power plant in Iran. Now, the aluminium producer is talking to an Islamic bank in Indonesia for securing a loan for the project, two investment banking sources said.

When contacted, Nalco Director (Finance) Mr B L Bagra said, “A bank from Indonesia has contacted Nalco for funding the Iran project.” But, he did not name the bank and refused to elaborate on the quantum of loan which could be sought.

Sources said the company has asked the Islamic bank to send its proposals and terms and conditions for granting the loan. The company is studying the proposal at the moment and would revert to the bank soon, they added.

For the Rs 6,000-crore Phase-I of the Iran project, it is learnt that Nalco is looking to raise about Rs 5,000 crore and rest would be funded through the company's internal accruals.

The navratna firm is keen on reviving the Iran project, and has said there is no problem in securing raw material to run the proposed plants there.

“Gas is available in the country to run the captive power plant. We have enough bauxite at home to export to Iran. Funding is the only problem for the project,” Mr Bagra had said. - PTI

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