Bhubaneswar:In a move that reinforces the Indian aluminium industry’s unified demand, the Federation of Indian Mineral Industries (FIMI) has submitted a formal representation to the Ministry of Commerce and Industry, seeking urgent extension of the Remission of Duties or Taxes on Export Products (RoDTEP) Scheme for aluminium-producing units located in Advance Authorisation (AA) holders, Export Oriented Units (EOUs), and Special Economic Zones (SEZs). This follows a similar appeal made recently by the Aluminium Association of India (AAI) to the Minister of Finance, underlining the importance of RoDTEP benefits to safeguard the competitiveness of nearly 45% of aluminium exports from India that originate from AA/EOU/SEZ units.
FIMI’s representation to Commerce Secretary Sunil Barthwal highlighted that the current lapse in RoDTEP coverage beyond 5th Feb 2025 is putting Indian aluminium producers at a cost disadvantage. These units continue to bear embedded taxes and duties, which is 5-10% of their production cost and eroding their competitiveness in the international market. The letter further mentioned that the Indian aluminium sector, with over $20 billion in investments and 4.1 million tonnes per annum capacity, is the second largest producer in the world. Any delay in reinstating RoDTEP benefits for exports from AA/EOU/SEZ units may lead to production cuts, job losses and setbacks to domestic value addition.
Previously, the Commerce Ministry had extended RoDTEP coverage to aluminium units through notifications in March and September 2024 and again on 20th March 2025, with benefits applicable only till 5th February 2025. In view of the ongoing global trade headwinds, FIMI has requested the Ministry to notify an extension beyond this date to ensure continuity and policy clarity. The industry is still waiting for formal notification for applicability from 6th February 2025 onwards With both FIMI and AAl echoing the same concern, the aluminium industry hopes the government will act swiftly to restore parity and support India’s ambition to become a global manufacturing hub.
