In the first quarter of FY22 until June 10, India’s bauxite imports totalled $ 51.97 million (Rs 390 crore), with a significant share going to the participants in the value chain of extraction, transportation, processing and supply of bauxite and its end output, informed Indian Industrial Value Chain Collective (IIVCC).
The IIVCC group represents organizations involved in the industrial production and consumption supply chain across India. India, with the fifth largest deposits of bauxite in the world, continues to suffer large-scale forex loss due to its reliance on bauxite imports. This has caused a forex loss of $571 million (Rs 4,400 crore) in the last 6 years alone,” as per IIVCC.
There is no substitute for bauxite, as it is the only ore used for aluminium production. Due to this, availability of bauxite is critical to the growth and development of the domestic aluminum industry.
Anil Agarwal-led Vedanta Limited, Hindalco Industries and state-owned National Aluminium Company Limited are the three largest primary aluminium producers in the country.
With bauxite reserves of more than 3.8 billion tonnes, it is baffling that India has to meet its bauxite requirements from imports. For every single mine auctioned, there is potential to garner Rs 5,000 crore for the exchequer and create 10,000 livelihood opportunities.
Bauxite import has increased by 300 percent in past six years as per data published in Import-Export Databank, Ministry of Commerce, Government of India.
Odisha is among the worst affected state due to this forex loss, which has nearly 50 per cent of the country’s bauxite reserves and 25 per cent of its coal reserves, both of which are the primary raw materials for aluminium production. The state has so far attracted investments of over Rs 1.4 lakh crore to make it the aluminum capital of the nation.