Aluminium Industry Calls For Government Intervention For Rate Declaration For SEZs, EOUs Under RoDTEP Scheme

The Aluminium Association of India urged the government that these steps would help increase the country’s exports and boost a favourable business environment for domestic industries to prosper. 

Currently, SEZs and EOUs together account as the source for more than 30 per cent of total aluminium exports from India.

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The Aluminium Association of India (AAI) called for government intervention for notification of rates for aluminium special economic zones and export oriented units (EOUs) under the RoDTEP scheme. The aluminium producers’ association body has urged the government that these steps would help increase the country’s exports and boost a favourable business environment for domestic industries to prosper. 

The scheme, Remission of Duties and Taxes on Exported Products (RoDTEP) looks into refunding taxes, levies, and duties borne by the exporters during the manufacturing and distribution process of goods, given that these expenses are not reimbursed by any other scheme at the centre, state or local level. The scheme has been functional since September 2021, reported PTI.

While the government notifies the RoDTEP rates for aluminium smelters in the domestic tariff areas (DTAs), the rate announcement for SEZs and EOUs is pending, the association said. Notably, the scheme was launched in 2019 to replace the Merchandise Exports from India Scheme (MEIS). 

India today is the second largest aluminium producer in the world, with an investment of more than $20 billion and a production capacity of 4.1 million tonnes per annum. The association further noted that the rates for aluminium products made within SEZs and EOUs are pending notification. 

Currently, SEZs and EOUs together account as the source for more than 30 per cent of total aluminium exports from India. The association stated that this meant that a major part of the aluminium industry is yet to gain from the benefits offered by RoDTEP. 

Another industry body, Assocham, has sought the government to take immediate supportive measures under the RoDTEP to help the aluminium industry, specifically the SEZs and EOUs, increase exports and provide an enhanced contribution to foreign exchange earnings. The body said, “We earnestly request your kind intervention for the RoDTEP rate declaration for SEZs and EOUs and the same to be made effective from January 1, 2021, i.e. from the date of declaration of the RoDTEP scheme.”