Engineering export body EEPC India Tuesday said anomaly of inverted duty structure in copper needs to be rectified to help the Indian export industry becoming globally competitive.
"The duty on copper concentrate is presently 2.5 per cent while the finished goods are coming at zero duty. There is a situation of inverted duty structure. Government should consider removal of this duty to help the industry become globally competitive," EEPC India chairman
Ravi Sehgal said.
"Indian domestic refined copper production has fallen significantly mainly because of the shutdown of Tuticorin smelter plant of Sterlite which used to account for 40 per cent of the country's copper smelting capacity," he said.
The Tamil Nadu State Pollution Control Board directed Sterlite to shut down the 4,00,000 tonne plant after 13 people, protesting alleged pollution caused in the area due to the plant, died in police firing in May last year.
The export of copper and copper products has fallen 69.4 per cent in FY'19 over the last fiscal.
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Domestic industry relies heavily on imports of copper concentrate from far off countries, particularly from South Africa, in a big way.
The EEPC called for bringing in a copper scrap policy in order to prevent import of inferior and hazardous scrap.
"We would also like to suggest that the government develop internationally compatible
standards and bring in a copper scrap policy on the lines of the steel scrap policy," the EEPC said.
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