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How to set up an Aluminium Smelter plant in India?

13 Oct, 2022
Aluminium Smelter plant

Aluminium is a durable and strong metal that is corrosion resilient, a good reflector and a good conductor of electricity and heat. Apart from these properties, aluminium is also non-magnetic and non-toxic. Because of these properties, it has innumerable amount of functions in the electrical industry, transport containers and packaging, building and construction, consumer goods (e.g. utensils), machinery and communications. Therefore, the growth of the aluminium smelter plant in India is quite evident.

In India, the utensils business grew considerably from 1929 onwards. But, the local manufacturing of aluminium metal was attempted only in 1937.

Market overview of Aluminium Smelter Plant in India

The global annual aluminium production is 4.17 thousand metric tons, with China contributing the maximum proportion. This is followed by the Gulf Co-operation Council, North America, and India. In 2021, the aluminium smelting market was estimated at 82.92 billion US dollars. Furthermore, the Global Aluminium Smelting Market is projected to increase at a Compound Annual Growth Rate of 5.15 per centfrom2021-2027.

The scope of application for the aluminium smelter plant in India is also broadening in agriculture. India is among the major farm equipment manufacturers like tractors, tillers and harvesters. Aluminium smelting is the second most crucial metallurgical industry in India.

Aluminium Smelting Process

  • Aluminium smelting is extracting aluminium from its oxide, alumina. The entire process is done commonly by adopting the Hall-Héroultprinciple at the aluminium smelter plant in India. Alumina is mined from the bauxite ore using the Bayer process at an alumina refinery.
  • An aluminium smelter in India uses a vast amount of electricity in the electrolysis method. Smelters are likely to be close to substantial hydroelectric power stations to decrease the overall carbon footprint.

Importance of Aluminium in different sectors


Industrial Sector

Aluminium demand


Electrical and Electronics

32 per cent



18 per cent



16 per cent



12 per cent


Consumer Durable

6 per cent


Industrial Machinery

4 per cent


Powders and Chemicals

6 per cent



6 per cent



100 per cent

Authorisation for establishing an Aluminium Smelter plant in India

To get the Aluminium smelter plant in India authorised under the Water and Air(Prevention and Control of Pollution) Acts[1], the owner has to acquire Consent Certificates (Consent to Establish and Consent to Operate). The procurement process for the Consent to Establish (CTE) and Consent to Operate (CTO)is similar. The certification form is uploaded on the official website of the State Pollution Control Board (SPCB)/the Pollution Control Committee (PCC) with the important documents. This process is then tagged along with the step of form evaluation. Once the documents and form are analysed for the acquisition of CTO, a government official from the state authorities monitors a site inspection. S/he then frames the inspection report as per his observations. And finally, according to this inspection report, the consent certificate is granted.

CTE is attained by the owner of the Aluminium smelter plant in India before the plant is instituted under the Air and Water (Prevention and Control of Pollution) Acts. The smelter acquires CTO after the plant is instituted and is equipped to start the process under the Acts mentioned above.

Documents required by the Aluminiumsmelter plant in India for CTE

As per the Air and Water (Prevention and Control of Pollution) Acts, for obtaining CTE from the SPCB/PCC for an Aluminium smelter plant in India, the business owner has to submit the documents listed below: –

  1. Land attainment documents, including registration/lease or sale deed
  2. A detailed project report is a compulsory for CTE contains –
    • Financial breakdown related to Pollution Control Measures
    • Control equipment relating to Air Pollution
    • Break up of land used and industrial process
    • Particulars for ETP and Solid Waste Management
    • Flow chart of the procedure
    • Amount of wastewater production
  3. Layout/Site plan

Aadhaar card

  1. GST certificate
  2. Copy of self-declaration form for RoHS (Restriction of Hazardous Substances)

Documents required by the Aluminiumsmelter plant in India for Consent to Operate

As per the Air and Water (Prevention and Control of Pollution) Acts, for acquiring CTO from the SPCB/PCC for an aluminium smelter plant in India, the smelter has to submit the following documents –

  1. Rule 14 of the Environmental (Protection) Act authorised Form V
  2. Electricity bill
  3. Water bill
  4. Proof of smeltership, including rent agreement/lease agreement
  5. Site plan/layout
  6. PANcard
  7. Aadhaar card
  8. Municipality/industry license for trading business
  9. Factory or trade license
  10. CTE
  11. Authorisation letter
  12. Health trade license
  13. CA letter on the financial breakup
  14. Goods and Services Tax certificate
  15. Verification of registration of unit under Companies Act/LLP Act

Additional Licenses

Hazardous Waste Authorisation                                                      

The registration relating to the establishment of any unit which disposes of hazardous waste, including the aluminium smelter plant in India, is managed and handled under the Hazardous Wastes (Management, Handling and Transboundary Movement) Rules, 2016. To get Hazardous Waste Authorisation, the smelter must apply under Form 1 to the concerned SPCB to register.

Compulsory documents for Hazardous Waste Authorisation relating to Aluminium smelter plant

The documents/licenses that must be uploaded mandatorily when applying for Hazardous Waste Authorisation are: –

  • CTE
  • Certificate of incorporation (CIN)/LLP
  • MOA (Memorandum of Association)
  • CTO
  • Board resolution for appointing an authorised person
  • AOA (Article of Association)
  • Aadhaar card
  • Layout plans
  • PAN copy
  • GST certificate of business
  • Factory/Trade license
  • Rent/proof of Smeltership

Company license

Documents required for establishing an aluminium smelter plant in India

  • Address proof such as –
    • Passport
    • Election or Voter Identity card
    • Ration card
    • Driving license
    • Electricity bill
    • Telephone bill
    • Aadhaar card
  • Residential proof, such as
    • Bank statement
    • Electricity bill
    • Telephone bill
    • Mobile bill
  • PAN card
  • MOA (Memorandum of Association)

GST registration certificate

  • AOA (Article of Association)

Udyam MSME Registration

MSME (Micro, Small and Medium Enterprise) registration needs the owner of the Aluminium smelter plant to apply via the centralised online portal of the regulating authority. The MSME Ministry is the nodal authority in this case. The smelter must then upload the directed documents. 

Documents needed for Micro, Small and Medium Enterprise Registration

  • Name and type of enterprise
  • Aadhaar card
  • PAN card
  • The NICcode
  • Applicant’sofficial name
  • Account details
  • The social category of the applicant
  • The business operations of the enterprise
  • Date of Incorporation of a business
  • Details related to employment

Factory license acquired by Aluminium smelter plant in India

To establish the units, the owner of the Aluminium smelter plants in India must register under Factories Act. According to the Act, the producer must get a Factory license, which the Chief Inspector of the Labour Commissioner Organisation grants. The license is obtained after examining the aluminium smelter plant as directed.

Documents needed by the Aluminium smelter plant for factory license

To obtain a Factory license for an Aluminium smelter plant in India, the documents required are: –

  • Form 1
  • MOA
  • Aadhaar card
  • Layout/site plan
  • List of directors
  • AOA
  • Partnership deed
  • Account details
  • Commencement date
  • Payment receipt
  • Land deeds
  • Consent form from SPCB/PCC
  • Details of hazardous and non-hazardous waste
  • Tax receipt

Import Export Code (IEC) registration

Import and Export Code (IEC) is the individualised ten-digit code granted by the Ministry of Commerce. It is needed for every exporter and importer in India. The Ministry of Commerce authorises the IEC through the Director-General of Foreign Trade (DGFT). It is a one-time authorisation that does not require new registration or authorisation.

The application for certification for the IEC (Import Export Code) is submitted online to the portal of the Ministry of Commerce with the Digital Signature Certificate (DSC), legal documents and bank details. This is prescribed by the authorities, after which the Import Export Code is authorised.

Documents Needed for IEC registration

The Ministry of Commerce requires the following documents required for an Import Export Code registration –

  • PAN card of the company
  • Applicant’s PAN
  • Aadhaar card
  • Partnership deed or Company Incorporation Certificate
  • Address proof
  • Attested copy of cancelled cheque in the company’s name leaf/banker certificate of the current account


Fire NOC

The Fire NOC (No objection Certificate) is mandatory for aluminium smelter plant in India. The NOC is approved by the local Municipality Authority and regulated by state authorities. This comprises applying for a NOC with the mandated documents, which will be furthered to the Chief Officer of the Fire Service Department, responsible for conducting a site inspection. After the inspection, the report is made and presented to the department, scrutinising further before the Fire NOC is ultimately granted.

Documents required for fire NOC for Aluminium smelter plant in India

  • Site plan
  • Basement floor plan
  • Stilt/ground floor plan
  • Floor-wise plan
  • Terrace plan
  • Section plan
  • Elevation plan
  • Any other records supporting the above documents

GST Certificate

Document required for GST certificate for establishing Aluminium Smelter plant

  • PAN card
  • The MCA authorised Incorporation Certificate
  • MOA
  • AOA
  • Aadhar card of the applicant
  • Address proof
  • Bank details

Trade license needed by Aluminium Smelter plant in India     

Municipal Corporation gives a trade license for the Aluminium Smelter plant. However,this depends on the rules and guidelines set by the state authorities. The licenses/documents obligatory for trade licenses are submitted along with the application.

Documents required for trade license Aluminium Smelter plant

  • Aadhaar card
  • Address proof (electricity or water bill)
  • PAN
  •  CIN, in the case of companies
  • Recent municipal property tax receipt in case the land of the aluminium smelter plant is owned, else lease document or consent letter of the smelter of the property where the business is registered
  • Memorandum of Association (MOA)
  • No Objection Certificate of the nearby property holders
  • Layout/site plan of the office


With the increase in the market for aluminium products and its many advantages, setting up its plant seems beneficial. Setting up an Aluminium smelter plant in India will prove to be a very lucrative business with market estimates of 82.92 billion US Dollars. The Global Aluminium Smelting Market is projected to increase at a Compound Annual Growth Rate (CAGR) of 5.15 per centfrom2021-2027 with numerous government initiatives. This can be the case given that the smelter gets proper authorisation and understand its responsibility towards the environment and circular economy model.

Read our Article: Consent to Operate vs Consent to Establish from Pollution Control Board

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