The aluminum manufacturers in India have raised several issues on various challenges. That aluminum industry is facing nowadays. Which is lacking them from raising high and moving a step further in their domain? Let’s discuss those issues to have a clear transparent image. Why these aluminum manufacturing industries are not leading ahead.
The major issues are:-
Being the largest producer of aluminum, India faces the highest cost of production. This can be a point towards the high power cost in India. As the aluminum manufacturers in India need very high power in the production of aluminum. Power is a critical and very important input for the Aluminium industry. As it consumes almost 30-40% of the cost of production. Which aluminum take in getting derive from alumina from Bauxite mines.
Aluminum manufacturers in India get their main product aluminum from the bauxite mines through mining. Either this mining process is not as easy and convenient as it seems to be. Bauxite mining is facing various concerns such as:
· There are permission delays in granting of environmental Clearances, Forest Clearances. Other required clearances causing a delay in work and development risk.
· Also issues in the land acquisition are see in mineral-rich areas.
· Issues are there between Centre, State, and bidders in matters of block allocation and profit consumption.
· Also the guidance is not completely there with the miners about the geological database of bauxite reserves present in India.
3. Infrastructure issues
· Aluminium manufacturers in India face absence and lack of railway connectivity and transportation facilities. In several remote mineral-rich areas which create a problem in commuting and connecting.
· As the raw bauxite is heavy, therefore there is an increase in the cost of transportation of Alumina and Bauxite which is bear by the Aluminium manufacturers.
· Costly infrastructure for disposal of the left out remains after the mining is from the bauxite mines.
4. Recycling of Scrap
The recycling process of Aluminium is so less capital intensive and requires. Only 5% of the energy to produce aluminum. But still, Aluminium manufacturers in India have some issues to be deal with recycling. India is the 2nd largest importer of scrap after China. India’s consumption of scrap is 100% import-dependent. Whereas China scraps import ratio is 21%. This shows the poor and non-strategic domestic scrap recycling policy and infrastructure India has.
5. Demand Recession
In recent years, the Aluminium manufacturers in India and the aluminum industry have been facing demand recession. But automobile, cable, and other consumers of Aluminium are able to surpass. Because of this recession problem. Thus the demand for aluminum will also go up there by the manufacturers can then increase production. And the growth of the aluminum industry.
So once all these issues are resolve, we can expect and see a drastic growth in the aluminum industry. And the Aluminium Manufacturers in India.