The Aluminium Association of India, representing domestic manufacturers of the metal, has asked for an increase in import duty of aluminium metal to 10 per cent from the existing 5 per cent and aluminium scrap to 10 per cent from the existing 2.5 per cent.

Senior members of the industry body, including top officials of Anil Agarwal-led Vedanta Group and Aditya Birla Group’s Hindalco, met with the Mines Secretary Balwinder Kumar and Kaushal Srivastava, Chairman, Central Board of Excise and Customs, on Thursday.

“The urgent resolution of the issues will not only save the domestic aluminium industry but will also give a boost to the ‘Make in India’ campaign initiated by the Prime Minister,” said Abhijit Pati, Chief Executive Officer (Aluminium Business), Vedanta.

“We were asked to provide a concise version of our demands so that they can take it forward which is a sign that something favourable can happen,” an industry official present at the meeting said.

According to association, the share of domestic producers in the Indian market has dropped drastically to 45 per cent in 2014-15 due to surging imports.

Data from the industry body show that imports from China and West Asia countries has almost doubled to 1,563 kilo tonnes in 2015 as against the import of 881 kilo tonnes in 2011.

The Association said that Chinese aluminium makers are benefiting from lower coal-based power tariffs while the West Asians have cheap gas based powers which is helping them supply aluminium metal and scrap at lower rates to India.

“The rising imports are delaying the expansion plans of all the companies. Today, the imports are around $100-$250 a tonne cheaper than the domestic product,” the official added.

The association told the Government officials that the industry had planned investments of ₹1.2 lakh crore to double the domestic production capacity to 4.1 million tonne per annum by fiscal 2018-19.

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