Indonesia is slowly becoming a sought after destination among Indian business houses. A number of Indian players like the Tatas Reliance Power and the Adani Group have invested in the country in various projects.

Latest to join the bandwagon is NALCO as it has signed an MoU with the Indonesia Government for setting up a 0.5 million tpa aluminium smelter project and a 1,250 MW coalbased power plant in East Kalimantan province in Indonesia. Total investment in the proposed project is pegged at $4.5 billion (approx Rs 21,825 crore), which will be made through a NALCO-led JV company. NALCO will have majority 75 per cent equity in the JV, while the remaining 25 per cent equity will be held by a local coal mining firm.

The MoU was signed in the presence of Anand Sharma, Indian Commerce and Industry Minister and Mari Elka Pangestu Indonesian Minister of Trade. Said Anand Sharma, Indian Commerce and Industry Minister "India wants to give more depth to our relations with Indonesia. Indian business houses have invested $20 billion in sectors like steel, power and coal in Indonesia". Apart from Indonesia, Indian firms are looking at Africa to source raw materials for their projects back home. KIOCL is looking to acquire iron ore mines in Africa as part of its expansion plans. The company has received some proposals from owners of land in Mozambique that contain magnetite deposits. The company is likely to send a team of officials to Mozambique to look at the deposits, soon.

Also, Jindal Steel & Power is planning to set up a 2,640 MW coal based power plant in Tete province of Mozambique at an investment of $3 billion (approx Rs 14,700 crore). The plant is slated to go on stream in 2015. The power generated from the unit will be sold domestically and to the southern African region.