With the demand for aluminum poised to rise exponentially from the current 4 million ton per annum (MTPA) to 10 MTPA BY 2030. The Aluminum Association on Tuesday said an investment of nearly Rs 4 lakh crore would be required to scale up production capacities and adequately cate to the rise in demand.
Challenges are stemming from rise in foreign imports, a decline in market share and escalating costs, aluminum industry representatives have sought government intervention for supportive measures to tide over this barrier. The increased cost of production to the rising cost of raw materials, the AAI has also pointed out that currently, nearly 20 per cent of the cost producing aluminum arises from government taxes alone. It also requested the government to ensure that the domestic market is not flooded by unchecked sub-standards imports in the form of scrap.