India’s National Aluminium Co. plans to build a 500,000-ton smelter in Iran.
India
plans a $3 billion aluminum smelter complex in Iran, now that nuclear
negotiations between Tehran and the P5+1 countries have concluded, media
reports say. . The idea was mooted in 2014 but India had been cooling its heels for the removal of sanctions on Iran to go ahead with the plan. . India’s
National Aluminium Co. is now reportedly giving a serious consideration
to the project after Iran and the P5+1 finalized their negotiations. . It
includes construction of a smelter to produce 500,000 metric tons of
aluminum per year and a 1,000-megawatt captive power plant. . India’s
coal stock is not sufficient to power its aluminum production and since
imports of coal are not viable, the country has to look for reserves
and build a plant abroad. . Iran is using a mix of sources for power generation, including hydroelectric stations, oil products and natural gas. . With
a lingering drought having drained dams and oil products polluting the
environment, the country is switching to gas-powered electricity. Last
year, Iran fed 50 billion cubic meters of gas into its power plants, up
from 36 billion cubic meters. . The country is viewed an ideal
destination for aluminum production because of its power generation
capacities, given that electricity accounts for 40% of smelting costs. . Iran
itself produces about 340,000 metric tons of aluminum per year and
plans to raise it to 1.5 million tons by 2025 with an investment of
about $12 billion. Hormozgan Aluminium Co. in the Iranian city of Bandar Abbas.Its
biggest aluminum manufacturer, the Iranian Aluminum Company (Iralco),
is based in the central city of Arak and listed on the Tehran Stock
Exchange. . Bid for business . Other Indian
companies are reportedly scouting for business opportunities in Iran.
Multinational conglomerate Larsen & Toubro is said to be angling for
oil and gas projects while Tata Power is looking for power schemes and
Adani Enterprises eyeing port investments. . India signed an MoU in
May for the development of Chabahar Port in southeast Iran. A commercial
accord is still needed to implement the pact. New Delhi says it will
use terminals in the port to operate container and multi-purpose cargo
ships. . Last month, the second English-language Indian daily, the
Hindu, said New Delhi had begun “resetting” ties with Tehran to pave
its way for entry into Afghanistan and the Central Asia. (Iran serves as a transit and gateway For India)
