National Aluminium Company (Nalco) has announced its plan to invest around USD 1 billion in Iran’s aluminum industry and construction of a power plant.

Nalco and Kerman Development Organisation will form up a joint venture (JV) company to make investments in Iran's Aluminum industry and electriciry segment.

Along with management control, Nalco will hold the majority share in the joint venture company.

The new Nalco overseas project entails a 1.55 lakh ton smelter during the initial phase and another identical capacity smelter in the second one, along with a 750 mw gas based captive power plant.

Nalco has put out an advertisement in order to receive bids to hire an engineering consultant for the project. The last date to submit the intent to take part in the venture for the companies is May 20.

Nalco’s overseas investments are part of its strategic plan to convert its surplus alumina production into metal in geographies with lower energy costs.

Shares of the company, on Friday (April 25), closed up Rs 5.9 at Rs 446.3 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 56,276.