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Aluminium industry seeks higher import duties to enhance self-sufficiency

AAI pointed out that imports of primary aluminium have doubled in recent years.

Published

2 years ago

October 29, 2024

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The Aluminium Association of India (AAI) has submitted a pre-budget proposal to the Department for Promotion of Industry and Internal Trade (DPIIT), which operates under India’s Ministry of Commerce. The proposal requests enhanced import protection to safeguard the domestic market and attract new investments, with the aim of making India self-sufficient in aluminium production—a sector crucial for national development and strategic applications. The AAI has proposed an increase in import duties on primary and downstream aluminium products, highlighting the metal’s significance in realizing India’s vision of becoming a developed nation by 2047.

Aluminium is essential to various sectors, including defence, aerospace, renewables, electric vehicles, power transmission, and sustainable infrastructure. Despite this, India’s per capita aluminium consumption is only 3 kg per annum, significantly lower than the global average of 12 kg. The AAI noted that higher aluminium usage is typical in advanced economies, citing that countries like the USA, Malaysia, and Indonesia recognize aluminium as a strategic sector.

In its representation, the AAI pointed out that imports of primary aluminium have doubled in recent years, along with a notable increase in low-quality scrap and downstream products, particularly from China.

The aluminium sector in India has already invested over Rs 1.5 trillion to expand production capacity to 4.2 million tonnes per annum (MTPA). However, to meet an anticipated domestic demand of 10 MTPA by 2030, the industry will require an additional investment of Rs 3 trillion over the next six years, which would generate significant employment opportunities within India.

Industry leaders have argued that the influx of imports is deterring new investments, primarily due to low import duties on primary and downstream products. This situation stands in stark contrast to other non-ferrous metals, where duties on scrap and primary products are more aligned. Consequently, the AAI has urged the central government to raise the import duty on primary and downstream products from the existing 7.5% to 10%, and to set the duty on aluminium scrap at 7.5% to match that of other aluminium products.

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Cement Firms to Invest Rs. 130 bn in Green Energy by FY28

Cement companies plan to expand clean energy capacity to 6 GW by FY28

Published

1 day ago

September 17, 2026

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India’s major cement companies are set to raise their clean energy capacity to 6 GW by March 2028 from around 4 GW at the end of March 2026, according to ratings agency ICRA. The planned expansion is expected to involve investments of Rs. 130 bn over the next two years.

The additional capacity could generate annual savings of Rs. 62 bn to Rs. 67 bn, resulting in an estimated payback period of 1.8 to 2.2 years. Cement is an emission-intensive industry, and leading producers have established net-zero roadmaps covering the next 15 to 20 years.

The calcination process accounts for 57 to 60 per cent of the sector’s total emissions, while fuel combustion contributes 27 to 30 per cent and electricity consumption accounts for 10 to 13 per cent. ICRA said the figures highlighted the need for a broad decarbonisation strategy involving green power, blended cement, alternative fuels and improvements in clinker efficiency.

Green energy is considered one of the most commercially attractive decarbonisation options because it can reduce emissions while lowering operating costs. Every 5 per cent increase in green power replacement can reduce power and fuel costs by Rs. 15 to Rs. 16 per tonne. A 25 per cent replacement level could therefore save Rs. 75 to Rs. 80 per tonne and expand operating margins by 140 to 160 basis points.

Cement producers are also assessing carbon capture, utilisation and storage, although high implementation costs, energy requirements and limited transport and storage infrastructure are expected to slow commercial adoption. The government has proposed Rs. 200 bn over five years to support deployment across key sectors. Meanwhile, companies are targeting thermal substitution rates of 10 to 15 per cent over the next three to five years, compared with the current industry level of around 6 per cent.

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Centre Defers Clearance for Limestone Mine Near Bustard Habitat

Panel seeks revised mining plan and safeguards for pipelines and wildlife

Published

2 days ago

September 16, 2026

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The Centre has deferred environmental clearance for a proposed limestone mine near a Great Indian Bustard habitat in Ramgarh, Rajasthan’s Jaisalmer district. The critically endangered species has an estimated wild population of about 130 in India.

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Telangana to Supply Subsidised Cement for Indiramma Houses

Poor families allotted Indiramma houses to receive cement at Rs. 230 per bag

Published

2 days ago

September 16, 2026

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The Telangana government will supply cement at a subsidised price of Rs. 230 per 50-kg bag to poor and low-income families allotted Indiramma houses. The prevailing market price is between Rs. 310 and Rs. 320 per bag, the Assembly was informed on Thursday.