New Delhi  - India's Jindal Stainless Ltd., and Indonesia's mining major PT Antam Tbk Monday entered into a joint venture agreement to develop a nickel smelting and stainless steel plant in Indonesia, a news report said.

"Indonesia's Antam will have 55 per cent interest in the project and Jindal will own 45 per cent share and the total investment is at about 700 million dollars, which will be funded with an optimum mix of 70:30 per cent debt-equity ratio," Jindal Stainless Director N C Mathur told PTI news agency.

He said the unit which will be established in south-east Sulawesi will be the first of its kind in Indonesia and would be located near nickel mines and a port.

The construction of the facility would begin in early 2009 and it is expected to be commissioned by the middle of 2011.

Officials said that the facility would have an initial capacity of 20,000 tons per annum (TPA) of a variety of nickel and around 250,000 TPA of stainless steel.

Antam, in which the Indonesian government has a majority stake earned a net profit of about 550 million dollars last year. (dpa)