AAI urges government to extend RoDTEP scheme for aluminium-producing units in SEZs
Aluminium Association of India (AAI) has urged the government to extend the Remission of Duties or Taxes on Export Products (RoDTEP) Scheme for aluminium-producing units in special economic zones (SEZs). Under the RoDTEP Scheme, the government allows refunds of embedded central, state and local duties/taxes to exporters.
Industry body said aluminium-producing units located within Advance Authorisation (AA) holders, Export Oriented Units (EOUs), and SEZs were covered under the RoDTEP scheme till February this year. Given the ongoing global trade uncertainties, the AAI has stressed on the urgent need to further extend the applicability of the RoDTEP Scheme for exports from aluminium producers located in AA/EOU/SEZ units.
AAI said with over $20 billion invested in growing domestic capacity, India is the second-largest aluminium producer globally with an annual capacity of 4.1 million tonnes and added that nearly 45 per cent of the nation's aluminium exports originates from AA/EOU/SEZ-based units. Further delay could leave Indian industries vulnerable to the impact of global trade uncertainties, leading to extensive production cuts, job losses, and hampered domestic growth.
It further said that export-oriented aluminium producing units bear a high incidence of both central and state taxes, constituting up to 10 per cent of production costs. Without an extension of the RoDTEP scheme, the global competitiveness of Indian aluminium exports will be impacted. The government had notified RoDTEP rates for aluminium smelters in AA/EOU/SEZ units in March 2024 and later granted an extension till February 2025.
