Aluminium cos, ministry work on policy
Indian aluminium industry is set to pump in more than Rs 1 lakh crore in the sector to raise capacity by four times in the next 5-6 years.
By TNN |
HYDERABAD: Indian aluminium industry is set to pump in more than Rs 1 lakh crore in the sector to raise capacity by four times in the next 5-6 years. Currently, aluminium production is around 1.1 million tonne and the target is raised to around 4 million tonne by 2012.
Vedanta and Nalco have already announced plans to invest Rs 25,000 crore each to expand aluminum capacities.
To increase India’s per capita consumption, the Aluminium Association of India (AAI) is on course to prepare a national aluminum policy in association with the Union ministry of mines.
The policy is expected to be drafted on the lines of the national steel policy and will aim to promote the various uses of the non-corroding and strong metal. The idea is to enhance its use in wagons, coaches, power cables and con-sumer useables like cans.
“The world’s per capita consumption of aluminium stands at 25 kg as compared to India’s low of 1.3 kg. China also consumes 11 kg per capita of aluminium annually. AAI is hence promoting the use of the metal and its alloys in more products,” said Hindalco’s executive president Shashi Maudgal on Wednesday at a press conference to an-nounce the fifth international conference and exhibition on aluminium.
The industry is already setting up a production line for cans at Aurangabad, which will be the first in India compared to 10 lines in China. In fact, 18-20% of the world’s aluminium consumption is in cans, while India’s is less than 3%. Car companies abroad are also shifting more towards aluminium for building the body as it scores both in weight and impact absorption against steel.
The aluminium industry is growing at 18% per annum and to capitalise on the country’s resources, the industry is planning an international aluminum convention this month. Aluminium is the key metal used in air crafts and if technology is applied for the production of parts, it is possible to have Airbus and Boeing assembly line in India in the future, Mr Maudgal said.
Vedanta and Nalco have already announced plans to invest Rs 25,000 crore each to expand aluminum capacities.
To increase India’s per capita consumption, the Aluminium Association of India (AAI) is on course to prepare a national aluminum policy in association with the Union ministry of mines.
The policy is expected to be drafted on the lines of the national steel policy and will aim to promote the various uses of the non-corroding and strong metal. The idea is to enhance its use in wagons, coaches, power cables and con-sumer useables like cans.
“The world’s per capita consumption of aluminium stands at 25 kg as compared to India’s low of 1.3 kg. China also consumes 11 kg per capita of aluminium annually. AAI is hence promoting the use of the metal and its alloys in more products,” said Hindalco’s executive president Shashi Maudgal on Wednesday at a press conference to an-nounce the fifth international conference and exhibition on aluminium.
The industry is already setting up a production line for cans at Aurangabad, which will be the first in India compared to 10 lines in China. In fact, 18-20% of the world’s aluminium consumption is in cans, while India’s is less than 3%. Car companies abroad are also shifting more towards aluminium for building the body as it scores both in weight and impact absorption against steel.
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India’s bauxite (ore for aluminium extraction) reserves are the third largest in the world. Currently, India’s production stands at 1.1 million tonne. With huge investments flowing in, capacity is expected to go up to 3.5-4 million tonne per annum by 2012. According to McKinsey, India will consume about 2.5 million tonne of aluminium by 2015. The aluminium industry is growing at 18% per annum and to capitalise on the country’s resources, the industry is planning an international aluminum convention this month. Aluminium is the key metal used in air crafts and if technology is applied for the production of parts, it is possible to have Airbus and Boeing assembly line in India in the future, Mr Maudgal said.
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