Close on the heels of the
Aluminium Association of India’s representation to Finance Ministry, industry
stakeholders seek Commerce Ministry’s support to retain export competitiveness
In a move that reinforces
the Indian aluminium industry’s unified demand, the Federation of Indian
Mineral Industries (FIMI) has submitted a formal representation to the Ministry
of Commerce and Industry, seeking urgent extension of the Remission of Duties
or Taxes on Export Products (RoDTEP) Scheme for aluminium-producing units
located in Advance Authorisation (AA) holders, Export Oriented Units (EOUs),
and Special Economic Zones (SEZs).
This follows a similar
appeal made recently by the Aluminium Association of India (AAI) to the Hon’ble
Minister of Finance, underlining the importance of RoDTEP benefits to safeguard
the competitiveness of nearly 45% of aluminium exports from India that originate
from AA/EOU/SEZ units.
FIMI’s representation to
Commerce Secretary Shri Sunil Barthwal appreciated the progressive policy
reforms by the Ministry but highlighted that the current lapse in RoDTEP
coverage beyond 5th Feb 2025 is putting Indian aluminium producers at a cost
disadvantage. These units continue to bear embedded taxes and duties, which is
5-10% of their production cost and eroding their competitiveness in the
international market.
The letter further
mentioned that the Indian aluminium sector, with over $20 billion in
investments and 4.1 million tonnes per annum capacity, is the second largest
producer in the world. Any delay in reinstating RoDTEP benefits for exports
from AA/EOU/SEZ units may lead to production cuts, job losses and setbacks to
domestic value addition.
Previously, the Commerce
Ministry had extended RoDTEP coverage to aluminium units through notifications
in March and September 2024 and again on 20th March 2025, with benefits
applicable only till 5th February 2025.
In view of the ongoing
global trade headwinds, FIMI has requested the Ministry to notify an extension
beyond this date to ensure continuity and policy clarity. The industry is still
waiting for formal notification for applicability from 6th February 2025
onwards.
With both FIMI and AAI
echoing the same concern, the aluminium industry hopes the government will act
swiftly to restore parity and support India’s ambition to become a global
manufacturing hub.
