Naidu’s tough fight to make Andhra Pradesh a key center for aluminium

Andhra Pradesh can become a key center for alumina and aluminium production if the state’s natural resources can be adequately utilized, ranking second only to Odisha. India has bauxite resources of nearly 3.48 billion tonnes of which 18 percent belongs to Andhra Pradesh. However, constant objection from various sections of society, political parties and Maoists is hindering the start of any new mines in the area.

Chandrababu Naidu is faced with a difficult situation where he has to break the mining logjam post his return to power after 10 years. There are talks about amendments in the Mines and Minerals (Development and Regulation) Act that will create more favorable conditions for allocation of new bauxite deposits to deserving candidates in all bauxite-bearing states.

Naidu however is constantly facing opposition like the petition from the civil society stating that bauxite mining in the Vishakhapatnam district worth 546 mt is likely to disrupt the “fragile ecological balance of the Eastern Ghats”, which is the source of multiple rivulets. Naidu tackled the matter by stating that the task of bauxite mining would be handed over to the state’s integrated Tribal Development Agency along with experienced public sector personnel.

A few years ago, the Gudem and Katamraju bauxite deposits were offered by the government to Nalco where a 1.4mt alumina refinery was supposed to be built. However, constant violence and agitation from the Maoists forced the company that stared with good intent to put the project on hold.

In a similar scenario, Arak Aluminium had also built a 1.5mt alumina refinery in agreement with the Andhra Pradesh Mineral Development Corporation with a promise of bauxite supply from the 225mt Jerrala deposit. However, the latter could not keep its end of the deal as the Centre froze all clearances for bauxite mines development in August 2010.

They as well as others in the aluminium industry are hoping that Naidu will be able to bring some change in the dismal condition of Andhra Pradesh that has so much of potential in the aluminium industry.