By Tricitynewsonline Reporter
Chandigarh Jan.
19, 2021:- Even as Indian Aluminium industry is going through a challenging
phase, Aluminium Association of India (AAI) has urged the central govt for
support in the Union Budget 2021-22 through a number of demands.
AAI said
that first is the need to increase the basic custom duty on Primary Aluminium
and Aluminium Scrap to 10%. This is necessary to battle current challenges
being faced by the industry in sustaining the share of the domestic aluminium
demand, which is today being imploded with imported aluminium – both scrap
aluminium and primary aluminium.
Second is
the elimination of cess on coal to support highly power intensive industries
like Aluminium, pointed out AAI. There is a GST Compensation cess of Rs. 400
per metric ton which is a bone of contention and makes the cost of producing
aluminium higher than the world average.
AAI further
said that third is the reduction in custom duty on critical raw materials for
aluminium industry value chain such as Calcined and Raw Petroleum Coke, Caustic
Soda and Alumina.
These high
input costs make Indian aluminium more expensive and uncompetitive in the
global markets as compared to aluminium being produced by other countries
thereby adversely impacting the metal’s export potential. This also encourages
local manufacturers of aluminium goods to seek out import channels to meet
their requirements, thereby making it a lose-lose for the country and the
industry, maintained AAI.
Meanwhile
the Aluminium industry is under immense threat by rising imports, declining
domestic market share, increasing production and logistics costs. These
challenges have been further compounded by the COVID-19 pandemic which has
adversely impacted the domestic demand for aluminium.
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