Aluminium Industry Seeks RoDTEP Extension for SEZ Units

24 Mar 2025 CW Team

The Aluminium Association of India (AAI) has urged the government to extend the Remission of Duties or Taxes on Export Products (RoDTEP) scheme to aluminium-producing units operating under Advance Authorisation (AA), Export Oriented Units (EOUs), and Special Economic Zones (SEZs).

In a representation to Finance Minister Nirmala Sitharaman, AAI highlighted that export-focused aluminium units face high tax burdens from both Central and State levies, adding up to 10% of production costs. The association warned that without an extension of the RoDTEP scheme, the global competitiveness of Indian aluminium exports could suffer.

The government had previously extended RoDTEP benefits to aluminium smelters in AA/EOU/SEZ units in March 2024 and again in September 2024, but the latest extension lapsed in February 2025.

India, the world’s second-largest aluminium producer, has an annual production capacity of 4.1 million tonnes, backed by over $20 billion in investments. Nearly 45% of the country’s aluminium exports originate from AA/EOU/SEZ-based units.

Given ongoing global trade uncertainties, AAI has emphasized the urgent need for extending RoDTEP benefits to these units. Without an extension, Indian aluminium manufacturers risk production slowdowns, job losses, and reduced domestic growth.

AAI stressed that continuing RoDTEP benefits will strengthen India’s export competitiveness, encourage further value addition, and support the government’s goal of enhancing domestic manufacturing.

(Business Line)

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