Aluminium Association of India (AAI), an apex body representing the entire value chain of the Indian aluminium industry, has requested the government to provide rates for aluminium special economic zones and export oriented units (EOUs) under the RoDTEP scheme. The Association suggests that once the RoDTEP rates are declared for SEZs and EOUs, the country will start seeing improvements in the domestic industry and experience enhanced exports.
RoDTEP stands for The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, introduced by the government to neutralize the taxes and duties levied on exported goods that used to be otherwise not credited or remitted or refunded in any manner at the centre, state, or local level. This scheme came into effect in September 2021.
"While RoDTEP rates for aluminium smelters located in DTAs (domestic tariff areas) have been notified, the rate declaration for SEZs and EOUs is still pending," it said.
Special economic zones (SEZs) and EOUs cumulatively represent the source of over 30 per cent of all aluminium exports from India. This indicates that a significant part of the domestic aluminium industry is yet to be covered by the RoDTEP scheme.
India, at present, has developed into the world's largest aluminium producer, with a capacity of 4.1 million tonnes per annum.
Industry body Assocham has also asked for the government's supportive measures for the domestic aluminium industry under the RoDTEP scheme so that exports grow and the contribution to forex earnings increases.
"...we earnestly request your kind intervention for the RoDTEP rate declaration for SEZs and EOUs and the same to be madeeffective from January 1, 2021 i.e. from the date of declaration of the RoDTEP scheme," the industry body said.
Last month, the association even pointed out that delay in releasing the RoDTEP scheme for special economic zones (SEZs) and export-oriented units (EOUs) affected Indian aluminium industry profit by 2 to 3 per cent.
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