Mr Dinsha Patel minister of state for mines (independent charge) informed the Rajya Sabha that the primary producers endeavor to reduce their operating cost through a slew of measures like reducing power consumption by adopting energy conservation methods, modernization of equipments, increase in current efficiency, reducing fallen anodes in smelter, improving productivity of workers, etc.
As energy cost is substantial in aluminium smelting, all the primary producers of aluminium have been brought under the ambit of a new initiative launched by the Government of India for energy conservation and assigned a target to reduce specific energy consumption from its base line value within a defined period i.e 2010-11 to 2013-14, to be monitored by the Bureau of Energy Efficiency(Ministry of Power). Besides, the government also reviews from time to time the rates of various duties including import duty on raw materials required for production of aluminium, reduction in transmission loss, allocation of coal blocks and/or linkage coal to the extent possible, with the objective of reducing the overall operating cost of primary aluminium producers.
The increase in the operating cost during the last one year is mainly due to the following:
1. Increase in prices of major raw materials and energy inputs viz Calcined Petroleum Coke, Coal Tar Pitch, Aluminium Flouride, Caustic soda, Fuel oil, etc.
2. Increase in transportation costs.
3. Increase in the price of coal by the Coal Companies.
4. Increase in employee remuneration and benefits due to high inflation rate and increased cost of living/ pay revision, etc.
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