India: MSME sector appeals govt. to withdraw import duty on aluminium

The apex body representing the entire spectrum of the Indian Aluminium Industry, the Aluminium Association of India’s President Rahul Sharma emphasized the drastic impact of coal dearth that has developed on industries. Accordingly, the fossil fuel counts for around 40% of the production cost which he stated in his letter to Coal India Ltd. (CIL).

He also added that the MSME sector is steering towards a risk factor of closure and lay-offs, as the facilities are compelled to functionalize with highly slashed power.

V.K. Agarwal, Managing Director of Shashi Cables Ltd. exploring this matter to another level commented: “Small units are the real sufferers not solely because of power shortage but there are other prominent issues as well, for which we will be liaising with the concerned Ministries. Our foremost suggestion to the Government is to bring down the import duty on Aluminium from 8% to 0.”

Agarwal added: “India’s primary producers of Aluminium charge a premium price for the purpose of covering transportation cost. This premium charge should be removed for domestic buyers as transportation cost is minimal.”

However, these reforms will regulate a drop in price by 10% to 12%, alongside government savings of about INR 2000 crore.

“That being said, power shortage has always been a menace in developing regions of our country, however, we do not see the situation worsening,” Agarwal said.