Milestone - Orissa occupies top place in India's Aluminium Sector.

BHUBANESWAR: Mineral rich Orissa occupies the first place in the country in aluminium sector, both in terms of production capacity and actual output, according to the economic survey report for 2009-10.

The report, placed in the state assembly, claimed that Orissa's position in aluminium sector went up after Vedanta Aluminium Ltd (VAL) started production in addition to Nalco.

While the Nalco's present refinery capacity was 1.57 mtpa, it would soon be increased to 2.1 mtpa after completion of expansion.

Similarly, the Navaratna company's smelter capacity would be increased to .46 mtpa from the existing .34 mtpa.

The state government's State Level Single Window Authority (SLSWA) meeting yesterday gave the green signal to VAL's expansion proposals which planned to increase capacity of its refinery to 6 mtpa from the existing 1 mtpa.

The private company has also received the SLSWA's nod for expanding its smelter capacity from 0.25 mtpa to 1.6mtpa.

"Of the four major aluminium production units in India, two are located in Orissa," the report said.

In January 2010, total aluminium production in the state was 48 per cent of total production by all four big aluminium plants combined.

Stating that most large-scale industries in Orissa were mineral based, the report said that the state retained 10 per cent of steel production capacity of the country, while it has 25 per cent of the iron ore reserves.

"There are new potential entrants such as Vedanta, Jindal, Posco and Essar into this sector in Orissa," the report said adding that steel producing capacity of the state would improve substantially if MoUs materialised.

While mining activities contributed 7 per cent of the gross state domestic product (GSDP) of the state, it seemed poised for a higher growth rate, the report said.

"In total value of mineral output, Orissa ranks No-1 in the country and its share is increasing," the report said, adding that export of minerals and ores from the state were increasing, but 'not steadily'.

Though it was growing, the report said direct employment in the mining sector was declining over the time. "It may be partly due to increased mechanization of extraction activity."