New Delhi, April 30 (KNN) The Federation of Indian Mineral Industries (FIMI) has formally petitioned the Commerce Ministry to extend the Remission of Duties or Taxes on Export Products (RoDTEP) scheme for aluminum producers operating in Advance Authorisation (AA) holder units, Export Oriented Units (EOUs), and Special Economic Zones (SEZs). 

This appeal follows a similar request made by the Aluminium Association of India (AAI) to the Finance Ministry earlier.

The RoDTEP scheme serves as a critical safeguard for maintaining the global competitiveness of nearly 45 percent of India’s aluminum exports, which originate from AA/EOU/SEZ units. 

Under this program, the government provides refunds for embedded central, state, and local duties and taxes to exporters, effectively creating a more level playing field in international markets.

The industry’s concern stems from the current RoDTEP coverage being extended only until February 5, 2025, with no formal notification yet issued regarding its applicability beyond that date. 

According to the FIMI, this regulatory uncertainty threatens the competitiveness of aluminum exports and could potentially impact production capacities, employment levels, and domestic value addition in the sector.

These specialised manufacturing units continue to incur embedded taxes and duties estimated to represent between 5-10 percent of their total production costs. 

The Commerce Ministry had previously extended RoDTEP coverage to aluminum units through notifications issued in March and September 2024, with a subsequent extension granted on March 20, 2025.

Industry representatives warned that any delay in reinstating RoDTEP benefits for exports from these specialised units could precipitate production reductions, job losses, and setbacks to domestic value addition initiatives.

(KNN Bureau)