This time around L&T wants to be in the project only as a minority partner and engineering-procurement-construction (EPC) contractor, instead of going for an equal joint venture which was its original plan.

Most international aluminium majors have lined up at L&T's doors, say sources, adding that even Alcoa has evinced renewed interest after rival Alcan chose to increase its presence in the country.

Sources close to the negotiations say that Pechiney of France, the world's largest aluminium company, has nosed ahead of other multinationals.

L&T officials said that the partner is likely to be finalised within the next one month. The project, as had been earlier planned, will come up in Orissa and is likely to cost around $1 billion. A L&T official said: "It is wrongto say that we have revived the alumina project. We had never shelved it in the first place. All we were looking for is the right partner, and the financial viability of the project."

Industry sources say the Pechiney has been testing the country's aluminium sector `seriously' for over a year now. It had even commissioned a UK-based investment bank, which has an Indian partner, for a feasibility study.

Pechiney has been present in India as a technology partner to National Aluminium, but has no equity presence. It has recently signed an agreement with Sterlite Industries for transfer of technology to its proposed greenfield smelter.

Alcan is one of the two aluminium multinationals, other than Norsk Hydro of Norway, which has management control in a domestic company.

A director with a domestic aluminium industry said: "The substantial delay will be beneficial for the project. Alcoa had walked out citing downward trend in international alumina prices way back in 1995.

"It has been proved correct asprices are now nearing five-year lows. Prices over the next three-four years can only increase."

The project, if it finally takes off, will be the third export-oriented alumina project in the country. Indal, along with Alcan, Norsk Hydro and the Tatas, are setting up a similar-sized alumina project in Orissa.

After much delay, the Gujarat government has also managed to rope in new partners, after Raytheon walked out, in a 7.5-lakh tonne per annum alumina project in Kutch.

L&T has earlier faced severe criticism from investors, in particular the foreign institutional investors (FII), for its decisions to diversify into alumina and steel. L&T had last year announced shelving of a severely-criticised steel project proposal while it remained non-committal on the alumina project.