The Centre on Wednesday said the demand by primary producers to raise import duty is “tricky” as the move will help the bigger players — Hindalco, Balco, Nalco and Vedanta — but may hurt smaller firms that import scrap.
The Ministry of Mines is reviewing the case for increasing import duty on aluminium and has met with both primary producers as well as small companies who import aluminium scrap for various purposes.
“On one side there are firms who are importing scrap. On the other hand primary players — Hindalco, Vedanta, Balco and Nalco — who tell us to raise the import duty on Aluminium. “But if we increase it then the firms who import scrap will be adversely affected,” said Mines Secretary Balwinder Kumar.
He added the ministry is monitoring the situation and reviewing the demand of both the groups.
“It is a tricky situation. So there are conflicting interests. We had a meeting with the primary producers and asked them to provide us their results of the first quarter of this fiscal so that we can accordingly decide.”
Primary producers are urging the Centre to raise basic customs duty on aluminium as they are being adversely affected due to cheap imports from China and West Asia.