Indian aluminium sector should aim at self-sufficiency in value-addition, opines mines minister

Indian aluminium companies are shifting their focus from being primarily a smelting oriented sector to a value-added industry, and in their endeavour to become one they are finding in the Mines Ministry a true facilitator. Piyush Goyal, minister for power, coal, mines and new and renewable energy recently said in an industry meet that his ministry will encourage value-addition initiatives in the aluminium sector and work hand in hand with the companies to enhance their self-sufficiency in the face of surging imports.

Goyal was addressing industry executives at the CII Global Natural Resources Conclave in New Delhi, where he said it was time India targeted aggressive expansion not only in mineral exploration but also in downstream aluminium value-added product creation and marketing.

Goyal's take on the matter holds extra significance since India's aluminium sector has been struggling to cope with the rising cheap imports that account for more than 50 per cent of the country's annual domestic consumption of 3.4 million tonnes.

He said, "While India will remain a part of the global trade network, some amount of self-sufficiency is always good and it will help in checking product prices in the long term."

It is mostly the small and medium-scale enterprises that account for most of the value addition in the manufacturing sector. Government's facilitation in the activities would help boost these SMEs significantly, Goyal said.

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Government is mulling putting the country’s entire mineral reserves data on a public domain so that based on prospective investor feedback areas can be carved out for auctions.

“We are open to suggestions on how to double the share of mining output in the country’s gross domestic product from 2.4% at present,” Goyal said.