New Delhi: Aluminum demand in India is poised to grow rapidly from the current 4 million tonnes per annum (MTPA) to 10 MTPA by 2030, requiring an investment of about Rs 4 lakh crore, the Aluminum Association of India (AAI) said on Tuesday. . To increase production capacity and adequately meet the increase in demand. Faced with challenges stemming from rising foreign imports, declining market share and rising costs, representatives of the aluminum industry have sought government intervention for supportive measures to tide over this challenging phase.
Read this also | Gold Can Saga: 3 tweets cost CEO of a beer company nearly Rs 5 crore as his marketing scheme backfired
Aluminum producing firms said the high cost of raw material procurement is proving to be a major deterrent in attracting fresh investments. Several key products for the sector like calcined pet coke, caustic soda lye and aluminum fluoride attract high duty of 7.5 per cent, which needs to be removed completely or rationalized to at least 2.5 per cent to promote cost competitiveness Is. Industry Body.
Citing increased cost of production due to rising raw material costs, AAI also pointed out that at present around 20 per cent of the cost of aluminum production is generated from government taxes alone. “This is holding back the growth of the aluminum sector including the domestic scrap scenario,” it said. Furthermore, for the overall development of the domestic recycling landscape, it is important to stop the dumping of low-quality foreign scrap in India.
Currently, foreign scrap is not governed by any quality standards, which present safety and environmental risks. Industry representatives have recommended that to prevent India from becoming a dumping ground for substandard foreign scrap, a duty of at least 10 per cent from the current 2.5 per cent should be imposed along with the necessary quality standards.
The AAI recommended rationalization of railway freight for transportation of critical raw materials such as bauxite, alumina and coal, as well as priority in rail allocation to the aluminum industry, keeping in view its position. The industry body also asked the government to consider abolishing the Goods and Services Tax (GST) compensation cess to support power-intensive industries such as aluminium.
It also urged the government to ensure that the domestic market is not flooded with uncontrolled substandard imports in the form of scrap. AAI said aluminum is an important pivot around which revolves the fortunes of several key industries essential to India’s rise. domestic aluminum industry, the industry body said.
The Aluminum Association of India said that although this year’s prolonged geopolitical conflict has dashed hopes of long-term stability, the Indian industry has been acknowledged as a frontrunner for its economy, which is reeling from turmoil. Represents hope for continued progress in the midst of turmoil.