'Coal, environment issues could impact aluminium production'

Issues concerning allocation of coal blocks and environmental clearances may pose a threat to achieve the expected production levels of aluminium in the 12th plan, a senior official of the Ministry of Mines said. G Srinivas, Joint Secretary of Ministry of Mines said, the current production of aluminium stands at 3.6 million tons per annum and is expected to reach 4.7 million tons by the end of 12th plan. "If you see the performance of the sector in the 11th plan, no new Greenfield project has been put in place. That is the real cause of concern," Srinivas said during his address at Incal-2011. "All the existing players are not able to start new plants. They are stuck up with environmental clearances or licenses and also stuck up at various stages with various problems. If we don't continue to start new projects, it is going be a real problem for the concerned area," he said. The mineral sector contributes around 1.5 per cent of the country's GDP and it is stagnated for the past decade, as compared to other developing countries, the official added. In some of the major mining economies in the world, the mining sector contributes up to 6 per cent of their GDP, he added. "The Per capita consumption of aluminium in India is 1.3 to 1.5 kg. It is very low. We are far away from Germany 38 kg, Japan 30 kg and China with 12 kg," the official explained. He said, the new draft Mining Policy was ready and the State Governments should take advantage of it and encourage the mining industry by speedy clearances.