Aluminium Association of India Ask Centre To Hike Import Duty And Encourage Domestic Production

Aluminium

The Aluminium Association of India (AAI), the apex body representing aluminium producers in India, has submitted its pre-budget representation to the Department for Promotion of Industry and Internal Trade (DPIIT) under Ministry of Commerce, Government of India.

It emphasises aluminium’s crucial role in India’s continued growth, especially as the nation envisions becoming a ‘Viksit Bharat’ by 2047. High aluminium usage is an established marker of advanced economies, given the metal’s extensive use in both present and futuristic applications. This has led several nations like USA, Malaysia and Indonesia to designate aluminium as a ‘strategic sector’.

As per industry estimates, India’s per capita consumption of aluminium is still around 3kg per annum, compared to the global average of 12kg. However, the sector is facing major challenges in attracting fresh investments, despite domestic demand for aluminium set to reach 10 MTPA by 2030. So far, the Indian aluminium industry has invested over USD 20 billion, to expand production capacity to 4.2 MTPA to meet the growing demand. However, a further investment of about USD 40 billion over the next 6 years will be needed to meet the expected demand of 10 MTPA, while also creating more jobs within India.

AAI states that given that aluminium is a strategic metal with extensive usage in defence, aerospace and sunrise sectors of renewables, electric vehicles, power transmission and sustainable infrastructure, it is paramount for India to be self-sufficient in aluminium production. Towards encouraging fresh investments, aluminium producers have requested the Central Government to safeguard the industry from surging imports.

The industry body states that over the past couple of years, imports of primary aluminium have doubled while there has also been a significant surge in low-quality scrap and downstream products, especially from China.

Industry members have highlighted that the influx of imports in the domestic market is a deterrent to making new investments in the sector, even when India has all the necessary ingredients to emerge as a global aluminium hub. According to them, the primary reason for the surge in imports is the low import duties on primary/downstream products and a prevalent duty difference between primary goods and scrap in aluminium. This is unlike other key non-ferrous metals, where the duty for scrap and primary is at par.

AAI states it is therefore requesting the Central Government to help ensure the nation’s self-sufficiency and attract new investments by increasing the import duty on primary/downstream products to 10 percent from the existing 7.5 percent. Additionally, to control cheap imports, the duty on aluminium scrap also needs to be set at 7.5 percent, at par with other aluminium products. This measure would encourage the recycling of domestic scrap and limit the influx of low-quality foreign scrap, helping strengthen the circular economy.

To ensure global competitiveness, it is essential that policies nurture a sustainable environment, fostering growth for the domestic industry while positioning India as a leader in the global market. This will provide some relief to the industry, already burdened by high tax and regulatory charges.

At present, the industry incurs around 17 percent of its cost of production in taxes, levies, and regulatory compliance charges. To ease this burden, the AAI has proposed an urgent rationalising of duties on crucial raw materials.

The domestic aluminium industry’s existing investments in capacity have led to the creation of over 800,000 direct and indirect jobs and spurred the development of more than 4,000 small and medium enterprises (SMEs) in remote regions, particularly in the downstream sector. According to the AAI, the additional investment of USD 40 billion to meet domestic demand would align with the Prime Minister's vision for an ‘Atmanirbhar Bharat’, while also creating 2 million livelihood opportunities across the country. With government support in the form of duty rationalisation and enhanced import restrictions, the domestic producers are confident of contributing to India's journey toward self-reliance.

Representational image courses: Victor Kovshevny/Flickr

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    Ola Electric’s Futurefactory Bags 5 Gold Awards At 49th ICQCC

    Ola Electric

    Ola Electric, one of India’s largest pure-play EV companies, has bagged five Gold Awards at the 49th International Convention on Quality Control Circles (ICQCC) held in Sri Lanka in November 2024.

    This landmark recognition was achieved by the company’s all-women workforce from Ola Futurefactory in Krishnagiri, Tamil Nadu, who competed against industry peers from 14 countries.

    The EV maker’s five teams won for the following projects –

    Paint Shop: Innovation in optimisation strategies that slashes operational costs.

    Motor Division: Enhancing product competitiveness by reducing Cost of Poor Quality (COPQ).

    General Assembly: Accelerating time-to-market by increasing capacity in the front fork sub-assembly process.

    Battery Shop: Improve battery pack productivity in order to meet the growing customer demands.

    Weld Shop: Improving robotics throughput to enhance operational efficiency and streamline workflows.

    Ola Electric acknowledged the role of its women-led teams from rural backgrounds, who showcased their work at the factory’s paint shop, motor shop, general assembly line, battery shop, and welding shop.

    “This recognition at ICQCC is a testament to our relentless pursuit of excellence with our incredibly talented women at the helm of the EV revolution at our Futurefactory. It reflects our ethos of blending innovation with empowerment and setting new benchmarks on the operational-heavy automotive shop floors, which are traditionally dominated by men. We are extremely happy to have started this shift in the Indian automotive manufacturing landscape and are committed to bringing more women on the shop floors,” commented an Ola spokesperson.

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      Siddharth Kirtane Appointed President, EV Division, Propel Industries Private Limited

      Siddharth Kirtane Appointed President, EV Division, Propel Industries Private Limited

      Coimbatore-based Propel Industries Private Limited has announced the appointment of Siddharth Kirtane as the President of its EV Division that makes heavy-duty e-trucks for construction and mining applications. Propel Industries – specialising in the manufacture of crushing equipment – homologated its electric heavy-duty Tipper (470 HEV) is September 2024 and has since been offering it in two battery variants—385 kWh and 256 kWh.  
      With a long-standing experience in the commercial vehicle industry in India as Head – Brand and Marketing, Volvo Trucks India; as Business Head – Construction and Infrastructure, Volvo Eicher Commercial Vehicles Ltd, and as Vice President, Marketing, Daimler India Commercial Vehicles, Kirtane will leverage his knowledge and expertise to scale up the EV business in his new role. 
       

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        Automobile Sales This Festive Season Exceed That Of The Last Festive Season

        Automobile Sales This Festive Season Exceed That Of The Last Festive Season

        The 42 days festive period vehicle retail data for 2024 that the Federation Of Automobile Dealers Associations (FADA) has released, the overall sales of automobiles during this festive season have exceeded that of the last festive season. 
        "I am delighted to announce that the automobile retail sector has achieved a new milestone, surpassing last year's festive records. We witnessed a remarkable surge in numbers since the beginning of Navratri, nearly hitting our forecasted target with 42.88 lakh vehicles registered during this period — a growth of 11.76 percent over last year's 38.37 lakh units,” mentioned C S Vigneshwar, President, FADA. 
        Two-wheeler sales were particularly robust, according to him, registering a 13.79 percent growth to reach 3.31 million units, largely driven by strong rural demand. 
        Passenger vehicle sales bounced back after a decline of roughly two-to-three months with a growth of 7.10 percent to 0.6 million units, spurred by pent-up demand and unprecedented discounts available in the market. 
        Acknowledging that the target of 45,00,000-unit sales could have been fully met or even exceeded were it not for the unseasonal heavy rains in South India (especially in Bengaluru and Tamil Nadu) and the Cyclone Dana that affected Odisha, Vigneshwar averred, “FADA anticipates – as the festivities conclude – that passenger vehicle stock levels will reduce further from was reported in the October retail data press release.”
        “FADA advises caution as the complete picture on inventory will emerge by month-end,” he added. 
        Stating that FADA urges OEMs to focus on liquidating 2024 stock so that Dealers can enter 2025 with ideal FADA-recommended 21 days of inventory, Vigneshwar said, “Its 1.5 months remaining before the calendar year ends.”
         

        Category

        Festive Season 2024

        Festive Season 2023

        Growth Percentage

        Two-wheelers

        33,11,325 units

        29,10,141 units

        13.79

        Three-wheelers

        1,59,960 units

        1,49,764 units

        6.81

        Commercial Vehicles

        1,28,738 units

        1,27,436 units

        1.02

        Passenger Vehicles

        6,03,009 units

        5,63,059 units

        7.10

        Tractors

        85,216 units

        86,640 units

        - 1.64

        Total

        42,88,248 units

        38,37,040 units

        11.76

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          TIG Welding Technology Workshop By Auto Cluster

          TIG Welding Technology Workshop By Auto Cluster

          The Auto Cluster Development And Research Institute, Chinchwad MIDC (Pune), is conducting a three-day workshop on TIG welding technology in its campus on 27-29 November 2024. 
          Lead by experts in the respective field such as Chandrakant Vaidya, who has over 40 years of experience in QAC and welding (and has worked at ENPRO Industries, Thermax and Babcock and Wilcox Energy System), and Vijay Patole, who too has over 40 years of experience in welding, the workshop will delve a variety of topics in the field of TIG welding. 
          Besides introducing the attendees to TIG welding, the workshop will delve into TIG welding theory, TIG welding equipment and setup, demonstration and hands-on practice, TIG welding techniques, welding different materials, welding positions and techniques, joint types, advanced TIG welding techniques, quality control, troubleshooting, weld quality inspection, final practice and project, industry-specific applications and welding equipment maintenance among other areas of knowledge and information. 
          The three-day workshop would include breakfast and lunch. The workshop has been specifically curated to ensure skill development and upskilling of those who are seeking to upgrade their skills in the respective field of manufacturing technology. 
           

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