New Delhi, Oct 11 (PTI) India's free trade pacts withcopper producing nations have posed a threat to the domesticindustry, state-owned Hindustan Copper (HCL) has said, askingthe industry to be innovative to meet future challenges.
"Import of finished copper is increasing over the years.
Free trade agreements with copper-producing countries haveposed a challenge to the Indian copper industry," HindustanCopper Ltd (HCL) said in Annual Report 2016-17.
The copper market in India, the report said, is likelyto remain positive with strong growth in key user segments,including power and construction.
On the back of improved economic activity in India, thedemand of the metal is likely to grow at 6-7 per cent incoming years.
Such high demand, the company said, is an offshoot ofincreasing urbanisation, development of industrial corridors,smart city project, housing for all by 2022, national highwaydevelopment and rail projects.
The defence production policy to encourage indigenousmanufacturing and ambitious green energy plans of thegovernment are also seen to drive the metal demand.
"In addition to this, there is a plan for green energycorridor for transmission of renewable energy," HindustanCopper said.
The per capita copper consumption in the country isexpected to rise to 1 kg by 2025, from the current 0.5 kg.
The consumption figure for China currently is 6 kg andthe world average is 2.7 kg. Import of finished copper ison the increase over the years.
Three major players dominate the Indian copper scene --HCL from the public sector and Hindalco and SterliteIndustries from the private space.
HCL is the only vertically integrated copper producer inthe country. Hindalco and Sterlite Industries have set upport-based smelting and refining plants at Dahej in Gujaratand Tuticorin in Tamil Nadu, respectively.
India has a total installed capacity of 9.9 lakh tonnesof refined copper production per annum.
Last fiscal, the mine ore production of HCL was 3.85million tonnes (mt) compared to 3.9 mt in 2015-16.
To increase output, HCL has chalked out an expansion planto ramp up mine production to 12.4 mtpa by 2018-19, from 3.2mtpa. PTI SIDARD.
This is unedited, unformatted feed from the Press Trust of India wire.