
A report by VK Saraswat, NITI Aayog member, and Aniruddha Ghosh, a Delhi-based economist suggests that the Centre must actively consider recognizing the aluminium sector as India’s ninth core industry. The sector contributes to 2% of manufacturing GDP and creates about 8 lakh direct and indirect jobs.

Currently, India lists coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity as the eight core industries. The report says that Indian aluminium facilities are generally based in the remote and underdeveloped areas of the country and they help in generating peripheral employment, infrastructural and economic development of the surrounding areas.
“Therefore, we recommend into looking actively into the possibility of classifying aluminium as a core industry,” the report suggested.
The report also recommends developing a separate energy policy for the energy-intensive sectors.
“High energy intensive sectors are being penalised by paying high carbon tax through various cesses and duties. A separate energy policy for these industries should ensure they receive power at globally competitive rates so that they can compete with global players,” the report said.
The report also suggested some improvement in railway facilities in order to aid the aluminium sector.
“N-BOX and BTAP wagons are in shortage; their poor availability affects coal movement and results in working capital blockage. Several mineral-rich areas of the country are yet to be connected with durable transportation infrastructure,” it said.
The report also made recommendation on better raw material exploration and residue management. The report recommends preparation of a robust geological database which can be mined for bauxite exploration. It also recommends the development of a system around these aluminium production plants for the reutilization of fly-ash and red-mud or bauxite residues. These waste products can be processed and reused as a feedstock for brick, gravel and cement industries.
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