Aluminium Industry

LOCATION FACTORS

• Proximity to raw materials areas (Bauxite, caustic soda, aluminum fluoride). 
• Availability of cheap Electricity as a continuous source of energy.
• Effective transportation to carry huge weight.
• Industrial clusters to serve as immediate market.

ISSUES IN ALUMINIUM INDUSTRY

• Production concentrated in few units like BALCO, HINDALCO, NALCO etc.
• Rising cost of domestic production due to increase in energy cost, coal cess and other duties.
• Over reliance on imports for coal, scrap and strategic metals.
• Administrative issues like delays in environmental clearances, complex laws and frequent change in policies. 
• Aluminum is a very important industry due to its light weight nature. It is increasingly replacing steel in automobile industry as aluminum-based vehicles are less in weight and are more fuel efficient. Also in aircrafts, railways etc.