"We have initially decided to export to South Asian Association of Regional Cooperation (Saarc) countries" Ghosh, told PTI in an interview. He said initially five per cent of total production would be exported and the corporation was negotiating with various companies in Nepal and Bangladesh.

The current production capacity of Balco is one lakh tonnes per annum with actual production of 90,000-92,000 tonnes annually. Exports will be of value added aluminium products like rolled products along with hot and cold rods, Ghosh said adding that despatch of first consignment is likely to begin from third quarter of current fiscal.

Balco has been an exporter of aluminium in the past and is already a recognised export house. However export had not been a thrust area for Balco. "There will be special emphasis on export along withfinding new markets for our products to have our presence in the international markets+ he said.

Balco exported aluminium worth Rs 18 crore in financial year 1997-98. Ghosh said the export thrust was part of Balco's on-going long term plan to achieve a profit of Rs 285 crore and improve post tax return on net worth from the current 7.58 per cent to 20 per cent.

"Export will help us in improving our profit margins along with earning foreign exchange for the country" he said. Ghosh said the corporation has drawn modernisation and expansion plans involving Rs 1,000 crore in next three years under which Balco intends to upgrade its technology in different areas.

The modernisation of its smelter and alumina refinery and revamping of its cast house are on the anvil. Preliminary work for expansion of its captive power unit and pre-project activites for expansion of Korba (Madhya Pradesh) aluminium complex with addition of a new extrusion press and other equipment were being undertaken.

In order to part-fundits expansion Balco last month raised 15 million dollar external commercial borrowing (ECB).

The funds raised through ECB would be used for buying continuous strip caster and one 40,000 tonne per annum capacity cold rolling mill. "Fifty per cent of cold rolling mill production would be exported," he said adding the unit was expected to start commercial production by year 2000.