 "Govt expects auction of 30 mineral blocks by Aug")
The Union mines ministry expects 30 more mineral blocks to go under the hammer by August. ‘’NITs (notices inviting tenders) have been issued [for] 32 mineral blocks. We expect 20-30 blocks would be auctioned in August,’’ said Mines Secretary Balvinder Kumar.
In Odisha, seven to eight mineral blocks are ready for auctions and we expect the state government to issue NITs in a month, he Kumar said.
On the concerns of aluminium producers over logistical costs, Kumar said the matter would be taken up with the railways ministry as well as the Railway Board to change the classification of both bauxite and alumina to reduce rail freight on the commodities.
Kumar agreed to AAI’s demand for the creation of an Aluminium Development Council on the lines of Steel Development Council. However, he said the government was yet to take a call on imposition of safeguard duty to check cheap aluminium imports and finished downstream products, especially from China and West Asia. ‘’We have to take a very balanced view of this issue (safeguard duty). There are concerns from downstream, secondary producers as well as from scrap producers. We are open to suggestions and are taking a considered view,’’ he said.
Kumar said the scope for growth of the sector in the state was unlimited. In 2015-16, the country’s production was up 19 per cent compared to the global average of six per cent. Also, aluminium consumption went up 25 per cent, higher than the world average of four per cent, he said.
The government’s push for Smart Cities and dedicated rail freight corridors will help accelerate aluminium demand in the country, he added.
Speaking on the occasion, T K Chand, president of AAI and chairman and managing director of National Aluminium Company (Nalco), said, ‘’India presents a huge opportunity for growth. Our per capita consumption is only 2.2 kg as against the world average of nine kg and China’s 24 kg.’’
However, logistics costs for producers was high at 20 per cent (of the production cost), Chand said, compared to nine per cent in West Asia.
Abhijit Pati, chief executive officer (aluminium business), Vedanta, said, ‘’In developed countries, aluminium is used in about 3,000 applications, whereas in India, there are only 300 applications. Demand is projected to grow 11 per cent this year.’’
Pati laid stress on strengthening the ecosystem in the country by developing world class aluminium parks in the vicinity of smelting units. ‘’Odisha must give a big push for developing downstream aluminium parks based on hot metal near its world class smelters, which can save energy by 30 per cent and metal loss by five per cent,’’ he said.
In Odisha, seven to eight mineral blocks are ready for auctions and we expect the state government to issue NITs in a month, he Kumar said.
On the concerns of aluminium producers over logistical costs, Kumar said the matter would be taken up with the railways ministry as well as the Railway Board to change the classification of both bauxite and alumina to reduce rail freight on the commodities.
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‘’Alumina is an intermediate product and the Aluminium Association of India (AAI) is right in saying it cannot be clubbed with metals for railway freight,’’ he added. Kumar was speaking at a seminar, organised here by AAI.
Kumar agreed to AAI’s demand for the creation of an Aluminium Development Council on the lines of Steel Development Council. However, he said the government was yet to take a call on imposition of safeguard duty to check cheap aluminium imports and finished downstream products, especially from China and West Asia. ‘’We have to take a very balanced view of this issue (safeguard duty). There are concerns from downstream, secondary producers as well as from scrap producers. We are open to suggestions and are taking a considered view,’’ he said.
Kumar said the scope for growth of the sector in the state was unlimited. In 2015-16, the country’s production was up 19 per cent compared to the global average of six per cent. Also, aluminium consumption went up 25 per cent, higher than the world average of four per cent, he said.
The government’s push for Smart Cities and dedicated rail freight corridors will help accelerate aluminium demand in the country, he added.
Speaking on the occasion, T K Chand, president of AAI and chairman and managing director of National Aluminium Company (Nalco), said, ‘’India presents a huge opportunity for growth. Our per capita consumption is only 2.2 kg as against the world average of nine kg and China’s 24 kg.’’
However, logistics costs for producers was high at 20 per cent (of the production cost), Chand said, compared to nine per cent in West Asia.
Abhijit Pati, chief executive officer (aluminium business), Vedanta, said, ‘’In developed countries, aluminium is used in about 3,000 applications, whereas in India, there are only 300 applications. Demand is projected to grow 11 per cent this year.’’
Pati laid stress on strengthening the ecosystem in the country by developing world class aluminium parks in the vicinity of smelting units. ‘’Odisha must give a big push for developing downstream aluminium parks based on hot metal near its world class smelters, which can save energy by 30 per cent and metal loss by five per cent,’’ he said.