The Federation of Indian Mineral Industries (FIMI) has requested the Ministry of Commerce and Industry to continue providing export support to aluminum companies under the RoDTEP scheme. The scheme benefits exporters by refunding part of the taxes and duties they incur in making the product. FIMI wishes this assistance to be extended to aluminum firms in special areas such as Advance Authorisation (AA), Export Oriented Units (EOUs), and Special Economic Zones (SEZs).

This plea comes in the wake of a similar one by Aluminium Association of India (AAI), which also stated that nearly 45% of India’s aluminium exports are from these special zones. Without the RoDTEP advantages, these firms are losing money and becoming less competitive as they still bear hidden taxes that cost them 5-10% of their costs.

FIMI’s letter to Commerce Secretary Shri Sunil Barthwal thanked the government for earlier policy changes, but warned that stopping the RoDTEP scheme after February 5, 2025, could hurt the industry. The aluminium sector in India is worth over $20 billion and can produce 4.1 million tonnes per year. If the support is not continued, companies might have to reduce production or cut jobs.

Previously, the government had permitted aluminium exporters to avail the RoDTEP scheme with announcements dated March and September 2024, and March 2025. These, however, are only until February 5, 2025.

Now, the sector is awaiting a fresh announcement to ensure that support will be extended after that date. Both FIMI and AAI are expecting the government to move fast to safeguard jobs and enable India to emerge as a leading manufacturing nation.