Business Standard

Why the aluminium industry is having a hard time

Aluminium is a highly power-intensive industry, with power accounting for 40% of the production cost


Sushil Kumar Roongta
Aluminium is a strategic metal for the Indian economy. The aluminium industry, in keeping with the anticipation of rapidly growing demand, has invested more than Rs 1.2 trillion to build its production capacity. Currently, the sector is struggling to stay afloat due to an unprecedented spike in power costs. 

The aluminium sector is one of the more power-intensive industries, where power accounts for 40 per cent of the production cost. The power cost itself has increased by about $280 per tonne, triggering a 16 per cent increase in production cost in the last three to four years.

Even the NITI
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

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First Published: Aug 31 2019 | 7:50 PM IST

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