Shares of Nalco and Hindalco will be in focus on anticipation that domestic aluminium industry could get duty relief on the import of raw materials in the upcoming Union Budget, CNBC-Awaaz reported on December 11, citing people familiar with the development.
It is learnt that the Centre keen to encourage domestic aluminium manufacturer as part of the initiative to seek self-reliance in manufacturing, and the Budget could extend some relief for the industry. Industry representative have made recommendations in this regard to the Finance Ministry. The relief could not only include a reduction in import duty on raw material, but it could also be extended in the form of a higher import duty on finished aluminium goods.
Industry representatives have proposed to reduce the import duty on calcine coke and aluminium fluoride from 7.5% to 2.5%, duty on raw petroleum coke be reduced from 10% to 2.5%, and caustic soda import duty be reduced to nil from current 7.5%.
Any reduction in the raw material cost could make domestic aluminium production more competitive in the global market, and are expected to weather the onslaught of cheaper imports.
The industry has also recommended that the import duty on finished aluminium goods be raised from 7.5% to 10-12%. Industry has also demanded that the duty on aluminium scarp from US be raised current 2.5% to 10%.
Centre is considering these recommendations and it is learnt that any duty hike on imports will be taken keeping in mind the interests of the MSMEs operating in the business.
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