INSUBCONTINENT EXCLUSIVE:
Aluminum industry has looked for customizeds task hike on scrap to 10 per centNew Delhi: The Aluminium Association of India (AAI) on Tuesday
said nation's consumption of scrap is almost totally import-dependent and has looked for a boost of customizeds duty on aluminium scrap to
10 per cent, despite having a substantial existence of main aluminium capability and capacity to create sufficient domestic scrap.Currently,
custom-made responsibility on main aluminium is 7.5 percent, downstream aluminium is 7.5-10 per cent and aluminium scrap is only 2.5 per
cent.The demand has actually featured the union budget for 2022-23 set to be presented next week on February 1, 2022 by finance minister
This is the reason that in spite of having significant existence of main aluminium capability and capacity to create enough domestic scrap,
India's intake of scrap is 100 per cent import-dependent
The method forward is to increase customizeds responsibility on aluminium scrap from 2.5 per cent to 10 per cent, the AAI stated in a
statement.The standard customs task on aluminium and aluminium scrap is not in line with other non-ferrous metals like zinc, lead, nickel
and tin, which is a huge drawback for domestic aluminium producers
The industry anticipates an increase in tariff rate of basic customizeds duty or peak custom task rate from existing 10 per cent to 15 per
cent.The main aluminium market is dealing with a serious threat from the increasing import of aluminium scrap
The share of scrap in total imports increased from 52 percent in FY16 to 66 percent in FY21, leading to a foreign exchange (forex) outgo of
$2 billion (Rs 15,000 crore), it said.As the Indian economy pushes forward to grow at nine percent and above over the next couple of years,
a crucial challenge for the country will be to re-balance its energy needs in favour of eco-friendly sources by 2030 to 50 per cent based on
the Paris Agreement.This is here that the aluminium sector will play a greater role than ever before.Extensive development in electric
vehicles, renewables, contemporary facilities, energy-efficient durable goods and greater dependence on tactical sectors such as aerospace
and defence, will drive aluminium consumption to grow at a compound annual development rate (CAGR) of 10 percent or more.For example,
aluminium use in EV batteries is 40-50 percent more than a regular internal combustion engine (ICE)
Being three times lighter than steel, it helps in fuel efficiency making it an effective option for EVs.
