BHP Billiton, the world's largest mining company, is entering India through a joint venture with Mumbai-based mineral producer and exporter Ashapura Minechem [Get Quote].

Sources said the broad contours of the agreement suggest that the Australian giant will pick up 51 per cent in Ashapura Minechem's Rs 2,500-crore (Rs 25 billion) alumina refining project in Orissa. Ashapura will hold the remaining 49 per cent.

The two partners will invest Rs 800 crore (Rs 8 billion) towards equity participation and the remaining Rs 1,700 crore (Rs 17 billion) will be mobilised through debt.

However, they will take some time to sign on the dotted line since government approval for the project is awaited.

Chetan Shah, managing director, Ashapura Minechem, declined to disclose the identity of his partner for the project. He added that government clearance would take another three months and the project would be commissioned by the end of next year.

Although BHP, which has a presence in 25 countries, has been doing business in India for over 30 years, it does not have an equity interest in any domestic project.

Its involvement with the Indian market began with technical tie-ups with the country's largest steel company, Steel Authority of India. Two years ago, it launched a development foundation in India.

Recently, BHP had shown interest in acquiring Sesa Goa [Get Quote], the country's second largest iron ore exporter, when its Japanese parent Mitsui put it on the block. It was later acquired by Anil Agarwal-controlled Vedanta Resources.

This will be Ashapura Minechem's second foreign joint venture. In March, the company signed an equal venture with Chinese firm Qingtongxia to set up an alumina project in Kutch.