FICCI | 03 Jun, 2022
V K Saraswat, Member, NITI Aayog said that India is not self-sufficient in the
production of copper ore. India imports copper concentrates for its smelters
and domestic demand for copper and its alloys is met through domestic
production, recycling of scrap and by imports.
In the current paradigm of
copper production we cannot wish away the copper recycling strategy as
recycling requires 85 percent less energy. "Recycling should be done as the
rate of recycling is very low. We need to do backward integration in the area
of copper recycling," he added.
He further shared that there should be
standards from the raw material stage upto finished products to maintain
quality and safety of refined copper. Dr Saraswat further added that primary
copper production is critical for India to be an export hub.
the seminar on 'Copper Industry Convention: Vision 2030 & 2047',
organized by FICCI, Dr Saraswat said that the recycling industry has to
have a major quality standard, and this comes from the quality of scrap used.
There has to be a scrap standard in place.
"Now we are working towards setting
up scrap standard. We have to solve this problem collectively. India has all
the capabilities to lay down standards with the best of the quality. It is the
question of working together and putting the right kind of standards in place
which is required. We need to have synchronized efforts to make copper industry
number one industry in the world," he emphasized he added.
on the ESG measures, Dr Saraswat stated that there is a need for copper
sector also to get some incentives including PLI to mitigate the extra cost
borne by the industry. "We need to focus on value added products and these
products can be made only if we have a PLI scheme for the sector," he noted.
the challenges of the copper sector, Dr Saraswat said that basic
challenge is the availability of basic raw material. "Securitizing the copper
concentrate along with other raw material is very important. The speed at which
the foreign mines acquisition needs to be done by our country has to be
accelerated," he added.
on the role of FTAs, he emphasized that FTA should be done with utmost care in
any segment and in case of copper it is very essential.
Srikar K Reddy, Joint Secretary,
Ministry of Commerce & Industry, Govt of India said that India has now
emerged as a trusted partner in global supply chain. "We are concluding FTA
with countries exhibiting complementarities especially with the developed
countries. We have concluded FTA with UAE in record 3 months and businesses on
both sides are benefiting from it," he added.
the recent FTA with Australia, Dr Reddy said that this is the first FTA
for India with any developed country over a decade. Australia has agreed to
provide 100 percent market access on all our products. "We hope the agreement
with Australia will be important also for the copper industry," he noted.
Reddy further stated that India's
export will double with UAE to reach US$ 50 billion in next 5 years from the
current US$ 27 billion mark and will create 1 million new jobs for Indians.
Also with Australia FTA, 1 million new jobs will be created. "These 2 FTAs will
be adding value to Indian GDP and create 2 million jobs in India," he added.
Sameer Patil, Deputy Commissioner -
Tax Research Unit, Central Board of Indirect Taxes and Customs, Ministry of
Finance, Govt of India said that margins and scale are two important components
for any industry. For companies engaged in commodities business then we can
look at working on large scale with reduced margins which can be passed on to
the domestic downstream industries.
Sanjeev Verma, Director, Ministry of
Mines Ministry said that copper industry has a lot of significance in the
Indian economy and has diversified application across many sectors. "Copper
industry forms an integral part of our economic growth supporting the mission
of Aatmanirbhar Bharat and US$ 5 trillion economy," he added. Mr Verma also
stated that under the circular economy, the ministry is working on zero waste
management of non-ferrous metals with NITI Aayog.
Rohit Pathak, Chief Executive Office,
Hindalco Industries, Birla Copper said that copper is a key element for transition to green and clean India. A
four-pronged effort is required to scale up the Indian Copper industry, he
Mr. Pathak further shared that there are four key areas which need
attention for the holistic growth of the Indian Copper Industry. India needs to
secure supply of copper concentrate for scaling Indian production to meet
India's future demand. India needs strong standards for copper scrap as 80% of
copper use is in electrical applications. This will also encourage responsible
recycling. India should focus on innovation & New Product Development in
the copper industry to cater to demand from emerging sectors.
Mr. Pathak also
shared that there are four key areas which need attention for the holistic
growth of the Indian Copper Industry. India needs to secure supply of copper
concentrate for scaling Indian production to meet India's future demand. India
needs strong standards for copper scrap as 80% of copper use is in electrical
applications. This will also encourage responsible recycling. India should
focus on innovation & New Product Development in the copper industry to
cater to demand from emerging sectors, he added.
Puneet Khurana, Deputy Chief
Executive Officer, Sterlite Copper said that copper concentrate security is
critical, and needs a strategic approach. There should be some incentive for
the exports in the wire and cables industry, he added.
Manufacturer Mr Milan Mehta highlighted the growing use of winding wires
across various sectors like automobiles, construction, transmission, etc. He
stated that while the production stands at 4,20,000 tonnes per annum, the
capacity utilization has only been at 60% countrywide.
As there would be a
growth in demand for winding wires due to investment trends in generation and
transmission, decarbonization goals, EVs, demand for white goods consumer
durables, and greater power consumption, winding wires industry can grow by
7.5-8% per annum in the next decade and grow up to 1.8-2 MT by 2047. This would
however require the work of strong, supportive primary copper producers,
reliant custom duty structure, circular economy pursuits, rationalization of
GST from 18% to 12%, and improvement in quality standards and investment
Mr. Kabara further added that the quality of copper used in Winding
Wire is critical for quality and performance of end products in India and for
exports. Direct melting of scrap for production of wires is concerning and
should not be encouraged.
Manufacturer Mr Gopal Kabra emphasized the growing demand of copper and
the expansion of the global copper wire business. He stated that the global
copper wire business stands at US$ 500 million, but India's share remains
meagre at 5%. Mr. Kabra also said that "Copper quality is critical to
prevent fire related accidents".