Govt extends "public utility" tag deadline for aluminum & bauxite industries

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Govt extends "public utility" tag deadline for aluminum & bauxite industries

Non-Ferrous 06 Feb 2024 01:08 PM IST Business Standard

For the next six months, the government has extended the deadline for industries engaged in the mining and production of bauxite and alumina, declaring them as "public utilities."

The Ministry of Labour and Employment issued a notification on February 2 invoking the Industrial Disputes Act, 1947, defining “public interest” and the need to maintain uninterrupted services in these “essential” sectors.

“The central government hereby declares the services of the said industries to be public utility services for the purposes of the said Act for a period of six months with effect from February 4, 2024,” the notification said.

A public utility service refers to an industry or service considered essential for the community’s well-being and functioning. These services are deemed so critical that disruptions or stoppages can significantly impact public life and cause hardship.

The decision to restrict workers’ ability to strike came days before labour unions called for a nationwide strike on February 16. Amarjeet Kaur, general secretary of the All India Trade Union Congress, mentioned that the extension is an attempt to deprive workers of their right to strike.

“The extension is in response to several organisations issuing strike notices. The current notice marks the beginning of a series of upcoming strikes. It reflects the government’s strategy to curtail workers’ rights,” Kaur said. “Earlier, the governments used to only give warnings, but this government wants to penalise workers,” she added.

In all industries, workers’ unions are required to give notice of 15 days or more before commencing a strike. However, any strike in public utility services is prohibited. Labour activists assert that this is not the first instance of such action being taken. These industries have been designated as public utilities since the pandemic period.

However, according to mining industry experts, the decision is driven by the increasing global demand for aluminium, a crucial metal utilised in various applications such as automobiles, airplanes, packaging, and construction.

India, as the world’s second-largest producer of aluminium, faces the potential of causing disruptions in global supply chains with any production setbacks. Bauxite is a mineral that serves as the primary source of aluminium. Industry insiders suggest that the move could provide some stability and predictability in production planning, potentially benefiting businesses in the short term.

According to the British Geological Survey’s World Mineral Production report for the years 2016-2020, India held the sixth position globally in terms of bauxite production quantity in 2020. Of the total global bauxite production of 368.6 million tonnes, India contributed 5.53 percent, according to the Ministry of Mines website.

Four major companies, namely Nalco (33.12%), Utkal Alumina International (26.67%), Odisha Mining Corporation (13.34%), Hindalco (9.64%), dominated the total mining activities of bauxite in the country in 2021-22.

Odisha accounted for 73.13% of the total output of bauxite during 2021-22 followed by Gujarat 8.97%, Jharkhand 8.04%, Chhattisgarh 4.3%, Maharashtra 2.85%, and Madhya Pradesh 2.71%.

The private sector played a substantial role, representing 50% of the total bauxite production. On the other hand, aluminium represents the second-largest metal market in the world, in volume terms, after iron and steel. India is the second-largest producer of aluminum, according to USGS.

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Govt extends "public utility" tag deadline for aluminum & bauxite industries

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