The Aluminium Association of India (AAI) has called on the government to extend the Remission of Duties or Taxes on Export Products (RoDTEP) Scheme for aluminium-producing units in Special Economic Zones (SEZs), citing concerns over global trade uncertainties.
Under the RoDTEP Scheme, exporters are eligible for refunds on embedded central, state, and local duties and taxes. Until February this year, aluminium-producing units operating under Advance Authorisation (AA) holders, Export Oriented Units (EOUs), and SEZs were covered under the scheme.
In a statement, AAI highlighted the critical need to continue the RoDTEP benefits for aluminum producers operating within AA/EOU/SEZ units. With India ranking as the world’s second-largest aluminum producer and an annual capacity of 4.1 million tonnes, the industry has attracted over USD 20 billion in domestic investment. Nearly 45% of India’s aluminum exports originate from these units, making their global competitiveness a key concern.
AAI warned that any further delay in extending the RoDTEP scheme could expose the domestic industry to severe global trade challenges, leading to production cuts, job losses, and hampered economic growth. The association also pointed out that export-oriented aluminium-producing units face a significant tax burden, with central and state taxes accounting for up to 10% of production costs. Without continued RoDTEP benefits, the competitiveness of Indian aluminum exports could be adversely affected.
In a formal representation to Finance and Corporate Affairs Minister Nirmala Sitharaman, AAI emphasized the urgency of the matter. The government had previously notified RoDTEP rates for aluminum smelters in AA/EOU/SEZ units in March 2024 and later granted an extension until February 2025. The association is now pushing for further continuity of the scheme to safeguard the industry’s stability and growth.
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