India’s bauxite output growth to accelerate even amidst strict regulations and tribal tensions: Fitch Solutions

Fitch Solutions Macro Research study shows that in spite of a positive outlook for India’s bauxite mining industry, tightening environmental regulations and tribal tensions may pose downside risks by slowing new projects.

Nevertheless, the study also indicates that India’s bauxite output growth will accelerate to serve growing demand from the domestic aluminium industry. Fitch Solutions said in its report, "We forecast Indian bauxite production to grow from 30.9 million tonnes in 2018 to 50.7 million tonnes by 2027....tightening environmental regulations and tribal tensions pose downside risks..."

In February last year, the Odisha government had approved long-term linkage (LTL) policy for bauxite. The state cabinet had also approved the amendment of the LTL policy to specify detailed guidelines for bauxite linkage.

Highlighting the important features of the amended LTL policy as approved by the government for linkage of bauxite, the government had said that 70 per cent of the saleable stocks of bauxite would be made available for long-term linkage and the rest 30 per cent would be sold through national e-auction.