FIMI Requests Immediate Extension of RoDTEP Scheme for Aluminium Exports from AA, EOU, and SEZ Units

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The Federation of Indian Mineral Industries (FIMI) has submitted a formal representation to the Ministry of Commerce and Industry, calling for the urgent extension of the Remission of Duties or Taxes on Export Products (RoDTEP) Scheme for aluminium-producing units operating under Advance Authorisation (AA), Export Oriented Units (EOUs), and Special Economic Zones (SEZs). This appeal follows a similar request recently submitted by the Aluminium Association of India (AAI) to the Ministry of Finance, underscoring the significance of the RoDTEP scheme in maintaining the cost competitiveness of nearly 45% of aluminium exports originating from these specialised zones.

In its submission to Commerce Secretary Shri Sunil Barthwal, FIMI acknowledged the Ministry’s policy efforts but highlighted that the RoDTEP benefits currently expire on 5 February 2025. The absence of an extension, according to FIMI, places Indian aluminium exporters at a financial disadvantage, as they continue to incur embedded taxes and duties—estimated at 5–10% of production costs—which are not reimbursed under current regulations.

FIMI further stated that the Indian aluminium industry, with annual production capacity of 4.1 million tonnes and over USD 20 billion in cumulative investment, ranks as the world’s second-largest aluminium producer. A delay in extending RoDTEP benefits could result in reduced output, employment losses, and adverse impacts on domestic value addition. The Ministry had earlier extended the RoDTEP scheme to include aluminium exports through notifications issued in March and September 2024 and again on 20 March 2025, although benefits remain applicable only up to 5 February 2025.

Given prevailing global trade uncertainties, FIMI has urged the Ministry to issue a formal notification extending RoDTEP coverage beyond the current expiry date, in order to maintain continuity, promote policy stability, and protect the global competitiveness of the Indian aluminium sector. With both FIMI and AAI presenting aligned positions, the industry anticipates timely action from the government to restore export parity and reinforce India’s objective of becoming a global manufacturing hub.