A Mines Ministry panel has recommended faster clearance to big bauxite mining projects in the country in the wake of aluminium demand likely to double to 2.8 million tonnes over the next six years.
Concerned that deficit of bauxite mining capacity will reach 12 million tonnes by 2016-17 from the present 2 MT, the panel is in favour of expediting clearance to big projects besides promoting domestic recycling facility, a Mines Ministry official told PTI.
"A Ministry working group to assess the demand for minerals during the 12th Plan period (2012-17) and its likely growth has recommended faster clearance of big projects besides facilitating bauxite/alumina imports through appropriate duty structure and has also stressed promoting domestic recycling," the official said.
While there are no new mines, the major projects pending for bauxite mining include Vedanta's 3 MTPA project in Orissa, Anrak Alumina's 4.5 MTPA project in Andhra Pradesh and Aditya Aluminium's 4.5 MTPA project in Orissa. These projects are awaiting various clearances while some are facing litigation.
The official said that apart from facilitating big projects, the Working Group recommended value addition in aluminium alloys.
Such a move should be encouraged through removing inverted duty structures and induction and promotion of appropriate technologies indigenously, the official said.
The Ministry panel also favoured domestic recycling to be promoted through a mix of regulation and fiscal measures to ensure more organised segregation/collection of scrap and more scientific melting/recycling to provide proper quality.
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