Budget 2013: Copper industry seeks import duty cut on copper cathodes.

MUMBAI: Copper industry has asked for bringing pricing of eco-friendly copper cathodes at par with copper concentrates by slashing import duties in the Union Budget.

"We have urged the Ministry of Finance to reduce duties on import of copper cathodes and make them at par with the duties on copper concentrates, to boost the local copper industry," TDT Copper President and Indian Copper Development Centre (ICDC) member Avinash Ladha told PTI here.

Currently, the tariff duty applicable on import of copper cathode is 5 per cent ad valorem, while copper concentrate attracts no duty.

In their Budget wish-list, green energy experts requested the Centre to explore the 'shared energy' or 'embedded energy' concept when it comes to importing metals such as copper & aluminium and allow metals at pure metal stage.

Ladha said importing copper cathode is more eco-friendly. Conversion of copper concentrates into copper cathode is not eco-friendly as it contains 98 per cent copper content.

"There is a demand for copper cathodes, when imported, to be allowed preferential import duty treatment, as is already available to import of copper concentrate from abroad", Ladha added.

He said importing cathodes rather than concentrates tantamount to "importing pollution".

"All developed countries, which have their own ores, prefer to directly import cathodes rather than concentrates, which are later converted into cathodes or billets. Power consumed per tonne to produce copper cathode from concentrate is very high and so is the sulphur emission per tonne of cathode produced," he said.

He said Hindustan CopperBSE -1.29 % produces only 1 per cent copper (40,000 tpa) and over 99 per cent aggregating 7 lakh TPA is imported in the form of copper concentrate, which has only 30 per cent copper and the remaining comprises impurities.

"So, in effect, the country is importing pollution, besides incurring heavy costs in transporting and treating the copper concentrate", Ladha said.


Source : economictimes.indiatimes.com