"The high import duties on raw materials is a huge disadvantage for domestic aluminium producers which are heavily dependent on imported raw materials. It results in Indian finished goods (getting) costlier and uncompetitive in international markets, rendering negative protection against cheaper imports of finished products, and discourages domestic value addition within the country," it said.
AAI has also suggested to the government to increase import duty on "aluminium scrap (HS Code 7602)" at par with primary aluminium metal to 10 per cent from the present 2.5 per cent in a bid to encourage recycling of domestic scrap and restrict increasing scrap imports.
The primary aluminium industry is facing severe threat from the increasing import of aluminium scrap, which constitutes around 58 per cent of the total aluminium imports in FY 2019-20, resulting in forex outgo of Rs 17,200 crore, it said.
AAI has also asked the government to eliminate high cess on coal (Rs 400/MT) to support the power intensive industries like aluminium and retain competitiveness of the domestic industry.
Finance Minister Nirmala Sitharaman will be presenting her second Union Budget on February 1.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.