Aluminium Sector capable to play vital role in the growth of India: Abhijit Pati, CEO & Director, BALCO

The Aluminum industry is predominant in the development of the country, as India is driving pivotal projects like Make in India, 100 Smart Cities, 100 AMRUT Cities, 24-hour uninterrupted power supply, 100% rural electrification, domestic space program, achieving 100 GW solar power generation capacity which is considered as the backbone of an economy and making the nation self-reliant.

In the presence of many other industry leaders, Mr Abhijit Pati, CEO & Director, Bharat Aluminium Company (BALCO) expressed his thoughts that “Aluminum sector has capabilities to play a major role in the growth of India”. He said while addressing a webinar as a key speaker at the 24th International Conference on Non- Ferrous Metals- 2020 on the ‘Prospects of Aluminium Industry in India & the challenges faced by the sector’

Addressing the audience & panel experts Abhijit Pati said: “Aluminium, being infinitely recyclable, is referred to as the ‘Green Metal’.  It can be reused for the same purpose repeatedly and retains 100% of its properties during recycling. The Aluminium industry is the largest non-ferrous metal industry in the world economy and the second-largest metal industry after Steel. Aluminium consumption in India at 2.5 kgs per capita is much below the global average of 11 kg per capita. In China, it is 25 kgs per capita. More developed countries have even higher per capita consumption of aluminium. Even at low consumption, aluminium contributes 2% of manufacturing GDP and this is expected to move up with consumption growth. This growth is critical for India’s industrial vision of achieving 25% of GDP from manufacturing by 2022.”

BALCO top executive also discussed the raw material (Bauxite & Coal) availability challenges, duties and cess, high Carbon Tax, Increasing Import of Aluminium and Scrap, declining domestic market share, inverted duty structure and high duties on raw materials as a huge disadvantage for domestic Aluminium producer’s dependent on imported raw materials, and unorganized domestic recycling industry due to lack of standards & the reforms required for strengthening the Indian industry.

Mr Pati explained how Classification of “Aluminium Industry” as a “Core Industry”, as recommended by NITI Aayog and Mines Ministry, and formulation of National Aluminium Policy as recommended by NITI Aayog can place Aluminium industry on priority status. Also, the pricing strategy for raw materials – coal and bauxite need to restructure to solve the prevalent issue of raw material security. He also suggested the much-needed reforms on guidelines for boosting domestic scrap recycling and achieving quality Standards for scrap usage/ imports and the ways export competitiveness can be enhanced in India through Remission of Duties or Taxes on Export Products Scheme exclusively for Aluminium industry.

The Indian Aluminium Industry has produced over 800,000 jobs directly & in-directly and developed over 4000 SMEs in the downstream sector. The aluminium industry has a strong output and employment multiplier effect on other key sectors. It has forward linkages with aviation, defence, auto, power, construction, packaging etc., and backward linkages with mining, refining, chemical industry, power, machinery.

India ranks as the 4^th largest coal reserves and 5^th largest bauxite reserves globally, along with its unique geographical location can make India a global low-cost aluminium production hub and in the outcome, it will be a major contributor to the nation’s GDP.

Note to readers: AlCircle brings two-day event for aluminium industry players. We look forward to meeting you virtually at “Global Aluminium Expo 2020” on October 6-7, 2020. For registration, visit www.alcircleevents.com