| Date: |
11-07-2015 |
| Subject: |
Industry demands import duty hike on aluminium metal, scrap |
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RAIPUR: To protect the interest of homegrown companies from rising imports of aluminium metal and its scrap, the aluminium industry has demanded that the Centre increase import duty on these products.
As per statistics of Aluminium Association of India, Indian Aluminium Industry has seen a huge surge in imports in recent years from 8.81 lakh tonne in the year 2010-11 to 15.63 lakh tonne in 2014-15 financial year -- primarily from Middle East and China. Similarly, the import of aluminium waste and scrap has increased at a compound annual growth rate of 16 % in the same period.
"The Indian Aluminium Industry is at a critical phase where it requires support from the government to maintain not only its current viability but also protect its growth plans that have significant economy contributions and benefits," Vice President, Community Relations of Balco (Bharat Aluminium Company), BK Shrivastav told PTI .
In London Metal Exchange (LME), aluminium prices have fallen to $1685 /MT in June 2015 which has significantly affected the global aluminium market.
The production cost of Balco is $1900/ MT that means the company is facing a loss of around $200 from per MT production, Shrivastav said.
Chhattisgarh's only aluminium production unit Balco of Vedanta group located in Korba, had to suffer a huge loss in first quarter of current financial year as per the company.
There are four primary aluminium producers in the country — Balco, Nalco, Hindalco & Vedanta Aluminium.
"Indian aluminium industry is facing big challenge from increasing import of primary aluminium metal and aluminium scrap.The rising imports are endangering the very basis of these large investments and their viability. Sale of domestic producers in the country is going down as imports are on the rise," Shrivastav said.
Source : timesofindia.indiatimes.com
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