The Aluminium Association of India (AAI) has urged the government to extend the Remission of Duties or Taxes on Export Products (RoDTEP) Scheme for aluminium-producing units operating under Advance Authorisation (AA), Export Oriented Units (EOUs), and Special Economic Zones (SEZs).India is the second-largest aluminium producer globally, with an annual production capacity of 4.1 million tonnes and an investment of over $20 billion in domestic manufacturing. Nearly 45% of India’s aluminium exports currently come from AA/EOU/SEZ-based units.
Previously covered under the RoDTEP scheme, these units lost their eligibility in February 2024. The AAI has warned that further delays in reinstating the scheme could make Indian aluminium exports less competitive, leading to production cuts, job losses, and a slowdown in domestic growth.
In a formal representation to Finance Minister Nirmala Sitharaman, the AAI highlighted that export-oriented aluminium units bear a high incidence of both Central and State taxes, constituting up to 10% of production costs. The association stressed that without RoDTEP benefits, Indian aluminium exports could struggle against global competitors.The government had previously notified RoDTEP rates for aluminium smelters in AA/EOU/SEZ units in March 2024, with an extension granted in September 2024. The industry is now awaiting further extension beyond February 2025.The AAI emphasised that continuing the RoDTEP scheme is essential to maintain a level playing field for Indian aluminium exports and to encourage further value addition in the domestic industry.
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