Govt mulls 'further steps' to guard aluminium sector interests

The Centre is mulling taking more measures to safeguard the interests of the aluminium industry, a Parliamentary Panel said today.
"The mines ministry is again considering to take further steps for the survival of the aluminium industry. For this purpose, several meetings have been held with the representatives of primary producers of aluminium as well as secondary producers of aluminium/downstream industries," it said.
The report is pertaining to the steps taken by the government on the observations/recommendations contained in the Twelfth Report of the Committee on Public Undertakings on National Aluminium Company Ltd (Nalco).
Keeping in view the survival of aluminium industry without compromising the interest of downstream industries, the Finance Ministry had in the budget 2016-17 increased basic import duty on primary aluminium products from 5 per cent to 7.5 per cent and on other aluminium products from 7.5 per cent to 10 per cent, the report said.

"The committee notes with serious concern that the import duties on aluminium and aluminium scrap are having adverse impact on the profitability of Nalco's production business... As a result, the companies including Nalco are going for cost-cutting measures as well as retrenchments and laying off workers to survive," it said.