Industry told to improve efficiency
Given huge resources, the mineral sector can double its contribution and add Rs.4 lakh crore to the GDP, said Dr Ajit Ranade, President & Chief Economist, Aditya Birla Group.
Addressing a webinar on 14 May 2020 on ‘Indian Mining & Metals Industry: Post Covid19 and Early Revival’, he believes the mining sector will contribute significantly in the growth of the nation’s economy.
“While we are in an auction-based mineral allocation process, the need is to learn from recent experiences,” said Dr. Ranade at the FICCI webinar.
Mining is a cost and labor incentive sector and in the present COVID-19 crisis, the cost of production has increased with a decrease in demand, said A K Chaudhary, Chairman, Steel Authority of India Ltd. & Chair, FICCI Steel Committee.
The government is taking measures to revive demand and now industry needs to work towards improving efficiency and demand while reducing the cost of production and upgrading technology in the sector, he said.
Chaudhary emphasized on the need for having demand revival soon for the recovery of Indian steel industry.
There has been a contraction in demand and operational issues have come up in the sector due to the pandemic crisis, added Tuhin Mukherjee, Managing Director, Essel Mining & Industries Ltd and Chair, FICCI Mining Committee.
Besides, there has been a shortage of workforce and opportunity for new exploration has also been lost due to the lockdown. Hence, the need is to deliberate on these issues to give a thrust to the sector, he pointed out.
The government was also urged to cut down unnecessary imports and incentivize exports.
Making the call, Satish Pai, Managing Director, Hindalco Industries and Chair, FICCI Non-ferrous Metals Committee, underlined that though aluminum production is high, India still imports it. Export schemes should be swiftly put in place to reduce imports, added Pai.
But R Saravanabhavan, NITI Aayog and the Government Participants, called on the industry to share detailed recommendations to resolve the issues faced, assuring early resolution of industry challenges.
Among other speakers, Rajib Maitra, Director (Mining, Metals & Industrial), Deloitte Consulting, underlined the potential measures that the government could take to revitalize the sector.
With contraction in domestic demand, the industry is focusing on export markets, he observed. fiinews.com
