Trapped in a pincer of rising coal prices and flooding of cheap imports, domestic aluminium industry needs government policy support to come out of this crisis.
During the last four years Indian aluminium producers have made investments of Rs 1.2 lakh crore to enhance total domestic capacity from 2 MTPA to 4.1 MTPA, with a total debt on the industry at Rs 70,000 crore. The installed domestic aluminium capacity in the country stands at 4.1 million tons/annum against the current domestic demand 3.3 million tonnes/annum implying that there is sufficient domestic capacity to cater 125% of India’s aluminium demand.
Yet, the distressing fact is that 50% of Indian Aluminium consumption is being met through imports mostly from China and Gulf. What is even more revealing, and damaging to the cause of Make in India Aluminium, is the fact that 50% of these imports constitutes of “scrap” which attracts lesser duties. This clearly is crippling the domestic aluminium industry. Read More…
Latest posts by Moneycontrol.com (see all)
- Oil Prices Fall On Rising US Crude Inventories, Darkening Economic Outlook - August 15, 2018
- Wheels India commences supply of suspension parts to Railways - August 14, 2018
- Reliance, BP spend Rs 7,000 cr to prolong output from D1, D3 fields in KG-D6 block - August 14, 2018