India's state-run aluminum producer, National Aluminium Co. Ltd (NALCO) said that it is looking forward to buy stakes in Indonesian coal mines.

NALCO is taking these steps since it wants to have a secure supply of aluminium project in East Kalimantan at Borneo Island, one of its key geographical area.

In a statement sent to media it said that it wants to invest in coal mines since that area has the capacity to heat more than 5,000 kcal/kg, air-dried basis (ADB). This can then be used to produce 10 million tons of coal per annum. The work is going to start from 2014.

As per the present requirement, NALCO needs to have 8-10 million tons of thermal coal every year. NALCO is planning to suffice the majority of this through the East Kalimantan project. The remaining is to be fulfilled by operations which are outside Indonesia.

It has asked for the proposals from the interested companies within 30 days.

Such plans are in line with what the Investment Coordinating Board had said in July. While some of the Indian companies are going for overseas bets, more and more FDI has also begun to flow within the country.