Companies like Hindalco and Sterlite Seek Govt. Help to Reduce Metal Dumping in India
Domestic capacity remains idle whilst cheaper imports meet half of India’s demand for copper and aluminum.
October 7, 2016
A sharp increase in the import of aluminum and copper from countries with which we have FTAs has affected major mining companies. They have urged the government to review decisions on duty concessions in this regard. Mr. Satish Pai, Managing Director, Hindalco Industries, at the World Non-Ferrous Conference 2016 said, “In order to see growth in central India which possesses mineral resources, there should be a balance between ‘Make in India’ to ‘Made in India’ and not ‘Imported into India’.”
Land acquisition, cost of capital and power, an inverse duty structure and logistics are major impediments for the growth of the base metals industry. In a scenario where interest rates are coming down, the cost of capital of between nine and 14 per cent is the highest in the world. Apart from that, Rs. 400 a tonne of green cess is also again the highest in the world. The government should provide an equal playing field for metal producers to be cost-competitive with others in the world.