what are the problems faced by aluminium smelting industry in India
Answers
Answer:
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Issues with Aluminium industry in India:
• Energy: Amongst the largest producers of aluminum like Canada, Russia, Middle East, Norway and China, India has the highest cost of production. This can be attributed to high power cost in India.
Power is a critical input for Aluminium industry accounting for almost 30-40% of their cost of production. Coal subsidies in various Aluminium producing countries gives an edge to them over Indian companies.
• Mining: Bauxite mining is facing various issues such as:
Delays in grant of environmental Clearances, Forest Clearances, other statutory clearances causing significant development risk. Land acquisition issues in mineral rich areas. Procedural issues between Centre, State and bidders in matters of bloc allocation. Lack of a robust geological database of bauxite reserves
Answer:
Infrastructure issues :: Absence of railway connectivity and transport infrastructure in several remote mineral rich areas. Increased cost of transportation of alumina and Bauxite.