Indian Aluminium Industry invested INR 4 lakh crore, expects Govt. to support the sector in 2021 budget: AAI President

Rahul Sharma, President, Aluminium Association of India and Deputy CEO of Vedanta Aluminium stated that the aluminium production cost has risen to more than double amid COVID-19 pandemic, whereas, LME prices are still improving from the April-June fall of $1,500 levels, the upcoming 2021 union budget needs to support the industry to rejuvenate.

Sharma was loud enough to say: “In India, we have sufficient capacity, we have invested around INR 4 lakh crore, but still imports are around INR 30,000 crore, today. As the economy moves up gradually, we expect the government to support this industry in the upcoming budget.”

“The metals sector is fundamental to the revival of the Indian manufacturing ecosystem, the realization of the dream of a ‘Self-Reliant India’ and we need to position India as an alternative to global manufacturing destination for Aluminium”, added Sharma.

“Bringing down the coal cess which has gone up from INR 50 a tonne to INR 400 a tonne in the past few years, will be very supportive for the industry.”

The President of AAI also commented that power takes 40% share in overall costs for the Aluminium industry, now coal availability has raised, but the cost remains high. However, one of the things the industry expects from the budget is making coal and bauxite availability better.

“The correction of inverted duty structure with reduction of import duties on critical raw materials of the Aluminium value chain in the upcoming union budget will go a long way in making India aluminium bridging the competitive gap it faces concerning other major global Aluminium producers”, he added.

The cost of production of Aluminium in India is considered as one of the highest in the world and prompt support concerning to rationalize the cost of power by reducing high cess on coal to support power-intensive industries like aluminium is highly recommended.

Rahul Sharma also said: “Removal of the long-overdue anomaly in differential import duties on primary aluminium and aluminium scrap will help arrest the flooding imports majorly from China, ASEAN and the US.”

“Despite having a surplus capacity in the industry, now, the challenge we have is sales. When the economy starts looking, we see sales picking up, but not to that amount, so we need some measures from the upcoming budget”, AAI President concluded.

source https://www.alcircle.com/news/indian-aluminium-industry-invested-inr-4-lakh-crore-expects-govt-to-support-the-sector-in-2021-budget-aai-president-62394