Table of Contents
The News
The News
Aluminium Reserves in India
Aluminium Reserves in India
Aluminium Production in India
Aluminium Reserves in India
- The Indian primary Aluminium industry consists of three major players
- National Aluminium Company Limited (NALCO)
- Hindalco Industries
- Vedanta Ltd. having a total production capacity of approximately 4 million tonne
- The total production of Primary Aluminium metal during FY 2019-20 & FY2020-21 was about 3.6 million tonne each year.
- The per capita consumption of Aluminium in India is low and is about 2.5 kg (FY 20-21) only as compared to global average of 11 kg (FY 2020).
Low Production & High Import
- The imports of Aluminium have remained consistently high.
- Around 60% of the total domestic consumption in the year 2020-21 was mostly dominated by import of scraps, constituting around 66% of total imports.
- The total aluminium imports including scrap during Financial Year 2020-21 was 2.06 million tonne as compared to 2.15 million tonne in previous year.
- The imports of scrap have been on an upward trend increasing from 0.867 million tonnes in FY 2015-16 to 1.37 million tonnes in FY 2020-21 i.e., CAGR (Compound Annual Growth Rate) of 9.6%.
- Note: India imported around $4.4 billion worth of Aluminium in 2019-20 & China was the biggest supplier, shipping Aluminium worth just over $1 billion
Aluminium demand to grow
- According to the committee report Aluminium demand is set to increase in various sectors
- Railways: ₹ 8.5 Lakh crore committed over the 5 year period with focus on Enhancing safety of passenger cars, Increasing speed of the trains & Driving energy and cost efficiency
- Transport : Target to increase automotive sector’s consumption in GDP to 12% from existing 7.5%.
- Power: Power consumption estimated to increase from 1160 to 1895TWh in 2022.
- Defence: The country has plans to spend $130 billion on military modernization in next 5 years.
- Consumer Durables/ Packaging: Aluminium consumption in consumer durables estimated to grow to 16% in 2021 from present level of 7%.
- Aerospace & Civil Aviation: India is set to surpass UK and become the third largest aviation market around 2024.
Govt Initiatives & a lot more to be done
- The Govt has taken many initiatives like
- MMRDA amendment 2015
- National mineral policy 2019
- Introduction of Non-Ferrous Metal Import Monitoring System (NFMIMS)
- Improving ease of doing business and reducing compliance burden
- Non-Ferrous Metal Scrap Recycling Framework
Recommendations
Recommendations
Recommendations
- The Government should prepare a plan to ensure year-wise increase in consumption targets to achieve global per capita consumption average of 11 kg and they be apprised of the same.
- Ministry of mines should promote research in applied geosciences, mineral exploration, mining and allied areas, mineral processing, optimum utilization and conservation of the mineral resources of the country, for the benefit of the nation and its people.
- Import of Aluminium remains very high. Import scrap policy and internal scrap recycling policy along with other innovative and indigenous growth oriented steps are needed to cut cost and improve quantity of Aluminium being produced in the country.
Latest Burning Issues | Free PDF