Norsk Hydro ASA plans has reached an agreement to buy Indian Aluminium Co. Ltd.'s share in Indal Hydro Extrusions Ltd. (IHEL).

Currently, Norsk holds a 50.5-percent stake in the extrusion venture, which will increase to 100 percent when the deal is completed.

An Indian Aluminium (Indal) spokesman-said that papers were being filed with India's Foreign Investment Promotion Board to seek clearance from the government authority. Under the rules, a board resolution will have to be submitted along, with a "no objection" certificate from the Indian partner--in this case, Indal.

The current paid-up capital of IHEL is $500,000 and Norsk will have to bring in $1.25 million. IHEL, which started operations in early 1997, manufactures and distributes aluminum extruded products, primarily for the building and construction industry.

Norsk also has a stake in Utkal Aluminium International, the Orissa-based 100-percent-export-oriented unit, which is engaged in upstream aluminum mining and refining. The Utkal project, a $1.075-billion alumina refinery project, is expected to go on stream by 2005. Norsk holds a 45-percent stake in the project.