‘India doesn’t need to import aluminium’, says mines minister

When an industry claims it has enough capacity, then why does it need to import the product to meet local demand? – is the question India’s Minister of State with Independent Charge for Power, Coal, New and Renewable Energy and Mines, Mr Piyush Goyal had for the country’s aluminium industry players when asked to comment on the possibility of imposing minimum import price on the metal.

“I have heard that over 45 per cent of India’s requirement is being imported. Why should it be imported when we have enough capacity?” Mr. Goyal said.

“Why should we import something that we can produce on our own? I am always going to support the domestic industry as long as they are fair,” he added.

He, however, did not sound much committal when asked about domestic primary aluminium industry’s demand for MIP for the metal.

Indian aluminium industry giants, under the umbrella concern of Aluminium Association of India (AAI), had met the mines minister on August 18 with a proposal seeking interim relief from cheap imports or imposition of MIP to protect the domestic aluminium industry. After the Centre gifted the domestic steel industry some relief from the onslaughts of cheap imports by introducing minimum import price on select steel products, the aluminium industry has now upped the ante in their demand for a similar relief that would help protect the interest of several primary producers in the country.

Mr Goyal admitted that there were procedural delays in allocation of mines other than coal, but said the process will make tracks once the states start getting used to the concept of auctioning. He brushed aside any claims that problems related to land acquisition were posing hurdles in the way of allocating mines. Demand was also not an issue, he added.

Following amendment of the Mines and Minerals Development and Regulation (amendment) Act in March 2015, just seven mines so far could be successfully auctioned by the states.