AAI seeks Government`s intervention for notification of rates for aluminium SEZs, EOUs under RoDTEP scheme
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Aluminium Association of India (AAI) has sought government's intervention for notification of rates for aluminium special economic zones (SEZs) and export-oriented units (EOUs) under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. AAI in its representation to the government has suggested that this would help boost the country's exports and encourage a favourable business landscape for domestic industries to develop. It said while RoDTEP rates for aluminium smelters located in DTAs (domestic tariff areas) have been notified, the rate declaration for SEZs and EOUs is still pending.
The RoDTEP scheme provides for refund of taxes, duties and levies that are incurred by exporters in the process of manufacturing and distribution of goods and are not being reimbursed under any other mechanism at the centre, state or local level. The scheme is operational since September 2021.
The RoDTEP scheme was announced in 2019 as a replacement to the Merchandise Exports from India scheme (MEIS). With over $20 billion invested, the nation is today the second largest aluminium producer in the world, with a production capacity of 4.1 million tonne per annum. SEZs and EOUs cumulatively represent the source of over 30 per cent of all aluminium exports from India. This indicates that a significant part of the domestic aluminium industry is yet to benefit from the comprehensive advantages offered by RoDTEP.
