Trade body Federation of Indian Chambers of Commerce and Industry (Ficci) has urged the Union ministry of commerce and industry to ban bauxite exports fearing closure of alumina refineries for shortage of the key raw material required to produce alumina.
“India has a large and developed aluminum industry. But the industry is today at cross roads primarily owing to severe shortage of raw materials, forcing plant closure and jeopardizing employment,” Arnab Kumar Hazra, Director, Ficci wrote to SR Rao, Union Commerce Secretary.
The exports have increased substantially in the last 2-3 years. Currently many bauxite mine lease holders mainly from the western part of India are exporting bauxite which in turn is creating scarcity of bauxite in the country, he pointed out.
Hazra urged the Centre to review export of bauxite from India and take steps either by way of levying a higher export duty or put ban on it.
The move from the chamber comes few days after Vedanta Aluminium Ltd (VAL), which is struggling to run its one million tonne alumina refinery at Lanjigarh in Kalahandi district in full capacity, had requested Ficci to move to the Centre for banning bauxite exports. VAL has already sent a three months advance closure notice to the state government stating that it won’t be able its plant beyond December 5 unless it has assured supply of bauxite.