Copper consumption to rise 10%

India's annual copper consumption is likely to increase by 10 per cent, compared with the world average of 4.56 per cent, as the government and the private sector increasingly focus on infrastructure.

The government's rural electrification plan coupled with the urbanisation of semi developed cities are likely to drive copper demand over the next decade.

Currently, India consumes approximately 6 lakh tonnes of copper with a per capita consumption of 0.4 kg. The Chinese average for the same is 2.6 kg and the developed country average is 15 kg. The country produces approximately 8 lakh tonnes of copper, with secondary copper accounting for 25 per cent.

With the demand for energy increasing with urbanisation, the power and electronics industries are likely to attract more and more investments towards the end of the 11th Five Year Plan, which requires an additional capacity of 100 gw. Currently, with an existing capacity of 124 gw, the country faces a shortfall of 7.3 per cent and a peak load shortfall of 11.7 per cent.

The power sector's consumption of copper will remain high as the energy demand is estimated to grow at 6-7 per cent annually.

"India's transmission and supply losses amount to roughly 35 per cent against the world average of 10 per cent. This an area which requires more and more copper," said Peter Charlton, director "� Asia, International Copper Association.

Copper has the property to reduce power losses during transmission. Hence all power equipment require maximum virgin copper. Any compromise on this front would have a major impact on power generation, Charlton added.

Copper is also used extensively in manufacturing medical equipment.

Speaking on secondary copper, Ajit Advani, CEO, International Copper Promotion Council (India), said the recovery of used copper was the need of the hour as the metal was either burnt or disposed off, currently, in ways that result in air, water and soil pollution.