The Pig Iron foundry industry in
India may find it tough to sustain the 15 per cent growth rate because of
dwindling iron ore resource.
Iron ore for the foundry industry
is mainly supplied from mining pits in Karnataka, Goa and Chhattisgarh. The ban
on mining of iron ore in Karnataka and Goa has impacted the supply of high
grade iron ore for pig iron.
In addition to iron ore supply,
the supply of uninterrupted power in all the major foundry clusters of West
Bengal, Karnataka, Punjab, Tamil Nadu, and Gujarat, is poor, said Mr Vinod
Kapur, vice-president, World Foundry Organization.
“In Tamil Nadu, foundries are being forced to run just one shift per day. Besides, every year, the power tariff is going up significantly. The ban on mining of iron ore has impacted foundries which are basically small and medium units are not in a position to secure supplies as it will significantly increase the cost of production,” he added.
Dr H. Sundara Murthy, President, Institute of Indian Foundrymen said, “For the next five years, the foundry industry will be on the growth trajectory, reaching an all-time high of 20 per cent. Unfortunately, poor supply of iron ore and erratic power supply to foundry units are seriously impacting the growth of the sector.”
Source: The Business Line
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