Aluminium consumption is likely to be more than 1.2Mt in 2009/10 (April-March), from last year’s 1.15Mt, said AK Sharma, chairman of the standing committee for non-ferrous minerals and industries at FIMI.

Indian demand increased at 8% in 2007/08 but then slowed in 2008/09. India produced 1.35Mt of aluminium in 2008/09, a small share of global production of 40.16Mt.

Nalco, India’s third-largest aluminium producer, is expanding the capacity of its smelter in Orissa to 460kt by December, although it would take a year for actual production to be increased to that level.

In 2009/10, the company is aiming for output of 435kt, a 20% jump from 361.2kt in 2008/09.