MSMEs urge Govt to remove duty on Aluminium
New Delhi, 14 Oct (KNN) The President of Aluminium Association of India, Rahul Sharma stressed upon the acute impact of coal shortage has created on industries wherein coal accounts for about 40 per cent of the production cost, in his letter to Coal India Ltd. (CIL) published in several media reports today.
He stated that, MSME sectors are sitting on a huge risk of closure and loss of employment, as plants are forced to operate at reduced power generation.
Dissecting this issue further, Lucknow based V.K. Agarwal, Managing Director, Shashi Cables Ltd., in conversation with KNN said, “Small units are the real sufferers not solely because of power shortage but there are other prominent issues as well, for which we will be liaising with the concerned Ministries. Our foremost suggestion to the Government is to bring down the import duty on Aluminium from 8 per cent to 0.”
India’s primary producers of Aluminium charge a premium price for the purpose of covering transportation cost. “This premium charge should be removed for domestic buyers as transportation cost is minimal,” opined Agarwal.
These reforms will influence a price drop of 10 to 12 per cent, along with government saving INR 2000 crore.
“That being said, power shortage has always been a menace in developing regions of our country, however we do not see the situation worsening,” added Agarwal.
National Aluminium Co. Ltd, Hindalco Industries Ltd, Bharat Aluminium Co. Ltd and Vedanta Aluminium Ltd (VAL) are primary producers of aluminium in India.