After consulting domestic aluminium manufacturers, state-run engineering consultant Mecon Ltd in a recent report submitted to the ministry of mines has recommended imposition of minimum import price (MIP) on primary aluminium to guard the industry against cheap imports.
Primary aluminium is the metal extracted during the reduction process of metallurgical alumina. Aluminium Association of India-a lobby group with firms such as Vedanta Ltd, Hindalco Industries Ltd and National Aluminium Co. Ltd (Nalco) are hiring Mecon to prepare a report to explore the possibility of introducing MIP on aluminium products.
“We have recently received a report from Mecon in which it says that MIP shall be imposed on primary aluminium as cost of production of domestic aluminium manufacturers is higher than the London Metal Exchange (LME) prices. We are currently examining the report,” said a senior government official requesting anonymity.