India: AAI asks govt to establish RoDTEP rates to boost industry profits

The Aluminium Association of India (AAI), representing the entire Indian aluminium industry, has urged the government to establish RoDTEP (The Remission of Duties and Taxes on Exported Products) rates for aluminium special economic zones (SEZs) and export-oriented units (EOUs), according to Alcircle.

The RoDTEP scheme, introduced in September 2021, is aimed at neutralising the taxes and duties on exported products. While rates for aluminium smelters in domestic tariff areas (DTAs) have been notified, rates for SEZs and EOUs are still pending. SEZs and EOUs account for more than 30% of all aluminium exports from India. The delay in implementing RoDTEP for these zones has had a 2-3% negative impact on the Indian aluminium industry's profits.

India is the world's largest aluminium producer with a capacity of 4.1 mnt/annum. The association also seeks government support for the domestic aluminium industry under the RoDTEP scheme to boost exports and contribute more to forex earnings. They have requested the government's intervention in declaring RoDTEP rates for SEZs and EOUs, effective from 1 January, 2021, which is the date of the RoDTEP scheme's declaration.

The AAI's request is aimed at fostering the growth of the domestic aluminium industry, promoting exports, and enhancing the industry's competitiveness. This would not only benefit the industry but also positively impact the country's overall economy. The association's call aligns with the broader goal of promoting 'Make in India' and reducing reliance on imports, furthering the nation's self-reliance in the aluminium sector.

Note: This article has been published in accordance with an article exchange agreement between Alcircle and SteelMint.