Nalco’s policy of exporting 60% of alumina produced impacts domestic manufacturers: IIVCC

Nalco’s policy of exporting 60% of alumina produced impacts domestic manufacturers: IIVCC

by admin- Thursday, April 28th, 2022 07:10:29 AM

Alumina no longer fed on with the aid of Nalco ought to be offered to different home producers, says council
Inability of home aluminium-makers to get entry to surplus alumina available with Nalco has multiplied their cost burden leading to extra reliance on imports, in line with Indian Industrial Value Chain Council (IIVCC)

IIVCC is a collection of firms involved in commercial production and intake supply chain sports .

India imports nearly 60 in keeping with cent of its aluminium requirement annually.

To manufacture one tonne of aluminium approximately two tonnes of alumina is needed.

According to Ashok Kumar Agrawal, National Convener, IIVCC, Nalco was furnished bauxite mines freed from price to sell increase of the home aluminium enterprise. Hence, excess alumina which isn’t always being consumed via Nalco have to be offered to different domestic manufacturers in place of exporting it.

India’s home alumina requirement is round 8 million tonnes annually, of which, 7 million tonnes are to be had internally. The remaining is met via exports.

According to the IIVCC, Nalco has an aluminium smelting capacity of 0.48 million tonne consistent with annum (mtpa) and an alumina production capability of 2.3 mtpa. So after using alumina for its very own aluminium production, the business enterprise has surplus availability of alumina to the tune of one.3 mtpa.

“However, Nalco’s alumina exports currently account for 60 per cent of its production. It utilises 1 mtpa of alumina generated for captive intake and the balance 1.Three mtpa is offered through tenders simplest to distant places shoppers,” the IIVCC claimed.

Uneven playing subject
By exporting alumina, Nalco is creating an uneven gambling subject for its peer aluminium organizations, the institution stated, including that there are numerous home aluminium smelters working in set up SEZs inside the country and via presenting to these producers the PSU will get all the export advantages like duty disadvantage, EPCG advantages and others.

SEZ-based totally flora have expressed their interest in participating in Nalco tenders and paying the port prices for directly securing elements from it, which could net the PSU an additional ₹two hundred crore.

“Due to Nalco’s coverage to now not supply domestically to home aluminium gamers, there now exists a scenario of simultaneous export and import of alumina within India, which has induced a loss to the exchequer of almost $5 billion (₹40,000 crore) in just the last seven years,” the IIVCC said.

The roundabout in exporting and re-importing alumina is also congesting the logistics network locally.

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