India presently produces around 1.8 million tonnes of aluminium per annum while China, which began the journey almost at the same time as India, produces over 20 MT annually.
Under the given scenario, SesaSterlite limited’s Jharsuguda smelter is a good news for the Indian aluminium sector. The unit is ready with 1.25-MTPA capacity and can begin commercial production very shortly, provided the company is allowed to use the desired power,
which it produces in its own power plant.
The SSl Jharsuguda complex, the ciuntry’s single largest location aluminium complex, houses the smelter, a 1,315-MW captive power plant and a 2,400-MW independent power plant (IPP).
Out of the total smelting capacity while 0.5 MTPA is already operational, another 1.25 MTPA is ready for commercial production provided it is given permission by the State Government to draw power from its IPP.
The Government’s nod to this effect will allow the company to kick-start operations at full capacity proving itself as a game changer for the State’s socioeconomic scenario, especially in the underdeveloped western part.
The benefits of SSl smelters running at full capacity are manifold. It will not only create direct and indirect employment opportunities to the tune of over 1,00,000 but will also augment growth of more than 100 ancillary and downstream industries and nearly 10,000 vendors.
Direct benefits accruing to the State exchequer is also mammoth. Contribution of the SSl unit at full capacity in annual taxes and duties will go up from `900 crore at present to `2,500 crore.
It will be a giant leap for the country in the global aluminium industry and boost for Prime Minister Naredra Modi’s ‘Make in India’ campaign, say industry watchers.
It is a fact that finished products contribute more towards employment and wealth generation.
Exporting aluminium in forms of ingots or rods is like selling of semi-finished products. If the country can first have a strong base of aluminium production and then capitalise on the same to create value-added products, the final results will be much more far-fetching in terms of economic growth.