The aluminium industry seeks the extension of RoDTEP scheme to ease export burden

The Federation of Indian Mineral Industries (FIMI) has urged the Indian government to extend the RoDTEP scheme to aluminium exporters, highlighting the financial stress faced by domestic producers. FIMI has submitted the request to ensure a level playing field in global markets.

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The RoDTEP scheme offers refunds on embedded central, state and local taxes that are not currently reimbursed through other means. Until February 2025, aluminium units operating under Advance Authorisation (AA), Export Oriented Units (EOUs), and Special Economic Zones (SEZs) were eligible. The scheme aims to support export competitiveness by offsetting unclaimed taxes.

The call for extension comes after the Aluminium Association of India (AAI) stressed the importance of this benefit. FIMI appreciated the Ministry’s progressive policy measures but, in its submission to Commerce Secretary Sunil Barthwal, stressed that ending RoDTEP coverage after 5 February 2025 would place Indian aluminium producers at a cost disadvantage, limiting their global competitiveness.

FIMI also highlighted that delay in resuming RoDTEP coverage has led to significant losses for aluminium exporters. These include financial strain, reduced global competitiveness and confusion around policy direction. Industry bodies are awaiting prompt clarification from the government.

In a recent appeal to Finance Minister Nirmala Sitharaman, AAI noted that aluminium exporters bear heavy tax burdens. These taxes, both central and state, can make up nearly 10 per cent of total production costs.

Industry leaders insist that continued policy support under RoDTEP is vital to maintain momentum. AAI has stressed that extending the scheme will help strengthen the sector’s export performance and long-term viability.