Aluminium industry seeks tighter scrap import rules to protect investments

Aluminium industry seeks tighter scrap import rules to protect investments

India's aluminum industry is embroiled in a debate over the imposition of import duties.

The Aluminium Association of India (AAI), representing primary producers, advocates for stricter controls on aluminum scrap imports and quality regulations.

They argue that an increase in imports of allegedly substandard scrap could jeopardize investments worth over ₹3 lakh crore.

Currently, a Basic Customs Duty of 7.5% is levied on primary aluminum and 2.5% on aluminum scrap.

Joint meeting held to address concerns

Dhawal Shah, Senior Vice President of the Material Recycling Association of India (MRAI), revealed that both sides of the industry recently attended a joint meeting with the Ministry of Mines.

"It was agreed by all that import duty on aluminum scrap should be removed," Shah said.

He added that India mainly imports processed aluminum scrap, further complicating the debate over import duties and quality regulations.

AAI warns of investment risks

The AAI has written to the Prime Minister's Office, expressing concerns over the rising imports of substandard scrap.

They argue that these imports could pose a threat to investments worth over ₹3 lakh crore.

The association also highlighted how their capacity has doubled from 2 million tons per annum (MTPA) to 4.2 MTPA in the last decade, making them one of the largest producers globally after China.