Top officials from Iran and India are scheduled to meet next week to discuss plans for the  construction of an aluminium smelter and a captive power plant project worth about $2.6 billion in Iran, said a report.

Tapan Kumar Chand, National Aluminium Company (Nalco)'s new chairman and managing director, will meet Iran's ambassador to India Gholamreza Ansari in New Delhi, India, in a week to further discuss the matter, said an Iran Daily report, citing the Economic Times.

Nalco's idea to set up the 1-million-tonne capacity facility in Iran is driven by power shortages in India given that electricity accounts for 40 per cent of smelting costs, it said.

Chand said that Nalco would prefer a local partner who could supply cheap electricity to fire the smelter. For feedstock in the plant, the company will ship alumina from the Indian state of Odisha, it added.

The company has been planning to build the smelter since 2014, but had to hold back plans because of the sanctions on Iran.

Last month's conclusion of nuclear talks has encouraged the Indian government and companies to push for stepped-up trade with Iran.