Aluminium industry urges RoDTEP extension for export units

The Aluminium Association of India (AAI) is asking the government to continue the RoDTEP Scheme for aluminium production in special economic zones (SEZs). This scheme helps exporters by refunding certain taxes and duties. Currently, almost 45% of India’s aluminium exports come from these units. The AAI made this request on Monday, highlighting the importance of the RoDTEP Scheme. It was originally set to cover specific aluminium-producing units until February 2025. The association noted that ongoing global trade uncertainties make it crucial to extend this support for exporters. India is the second-largest aluminium producer in the world, with an annual production capacity of 4.1 million tonnes. The AAI mentioned that more than $20 billion has been invested to expand domestic capacity. However, without the extension of the RoDTEP Scheme, Indian exporters could face challenges that may lead to job losses and reduced production. In a letter to Finance Minister Nirmala Sitharaman, the AAI pointed out that aluminium units face high tax rates, which can account for up to 10% of their production costs. They warned that the competitiveness of Indian aluminium in global markets could be at risk if the scheme is not continued.