To put a minimum import price on aluminium import in India, Government is thinking to decide. By this on rising import of cheaper aluminium from the global market can be checked. This is cutting into domestic manufacturer’s market.
on the case of domestic manufacturers, Revenue Department, Ministry of Finance is working. for levying a minimum import price (MIP, this request is led by Vedanta, Nalco, Hindalco and Balco.
On August 18, Top officials of local manufacturing companies went to Finance Minister Arun Jaitley, to put forward the need to shield them from the low priced imports. On restrictions of import, They have asked for immediate instructions. As per Source, MIP on aluminium import will be similar to the one levied on steel earlier.
Biggest producer, as well as consumer of metals, is China. In the weak domestic market, The country is exporting their extra production.
In a conference, CEO of Vedanta Tom Albanese said that to make sure that demand of aluminium business is supplied by locally produced aluminium, they are in talks with state and central government. “Right now steel market has a variety of rights from imports but only about 15 % of steel comes from imports whereas 50 % of aluminium comes from imports in India. He also told you have much greater import penetration in the aluminium sector than you have of the steel sector.”
In the world the largest unutilized aluminium making capacity is the Chinese Supplier, he also said. He discussed of situation in which if China gives subsidy on power, “if that China potential gets been found with sponsored power, it is likely we will see overflow of newly imported aluminum coming into Indian market”.
As India has bauxite resources for the production of aluminium and they should be utilised, so he said to avoid imports. Aluminium industry representatives, During the presentation described to the Finance Ministry that in 2015¬-16 fiscal, primary aluminium producers have faced losses of Rs 4,025 crore. These failures are much greater than Rs 1,480 crore loss in 2014-¬15.
“The country is experiencing a situation wherein 50 % of its demand is met through imports, particularly from China, where aluminium companies are sponsored by the China govt,” the industry told.