JUNE 20248CENTRAL GOVERNMENT CUTS WINDFALL CRUDE TO RS.5,200 FROM RS.5,700ALTMIN SEEKING TO SECURE LITHIUM FROM AUSTRALIA GOVERNMENTThe Centre on Saturday slashed windfall gains tax on domestically-produced crude to 5,200 per tonne from earlier 5,700 per tonne. The export duty on petrol diesel and aviation turbine fuel (ATF) will continue to be nil.The new rates will be effective June 1 2024, the Central Board of Indirect Taxes and Customs (CBIC) said in a late night notification Friday.On May 16, the Centre had revised windfall tax on domestically produced crude oil to 5,700 down from 8,400 per tonne.On April 16, the Centre raised the windfall tax on petroleum crude to 9,600 per tonne from 6,800, after firming of crude oil prices in the international market. It was further slashed to 8,400 per tonne.India first imposed windfall profit taxes on July 1, 2022, joining a host of nations that tax extraordinary profits of energy companies. The rates are reviewed every fortnight based on international crude oil prices in the previous two weeks.When domestic crude oil's global benchmark price reaches $75 per barrel, the windfall tax typically kicks in. Additionally, the assessment on diesel, ATF, petroleum is applied assuming the item edges outperform $20 per barrel. The official notification stated that the Special Additional Excise Duty (SAED) for diesel and aviation fuel remained at zero. This tax is imposed in the form of SAED. Indian battery materials producer Altmin is discussing with the Australian government to secure lithium supplies as part of its expansion strategy to address the growing demand for this critical mineral. Anjani Sri Mourya Sunkavalli, the company's managing director, confirmed that talks are ongoing with the Australian High Commission and the critical minerals office.Currently, Altmin sources lithium carbonate from Brazil and Bolivia. Last year, the company signed an agreement with Bolivia's state-owned Yacimientos de Litio Bolivianos (YLB) to establish a plant in Bolivia to produce lithium iron phosphate materials. The plan includes importing lithium carbonate from YLB's Bolivian plant to support Altmin's operations in India.In addition, Altmin is exploring opportunities to set up lithium refineries in Brazil and Australia. This initiative is part of a broader strategy to diversify and secure its supply chain.With India lacking local lithium processing facilities, the Indian government is offering incentives to encourage private companies to establish such infrastructure domestically. This move aims to reduce dependence on imported lithium and bolster the country's position in the global battery materials market.Sunkavalli also mentioned the possibility of securing supplies of spodumene, a lithium-rich mineral, from Brazil. This would further enhance Altmin's ability to meet the increasing demand for lithium in the production of batteries, particularly as the global shift towards electric vehicles and renewable energy storage solutions accelerates. TOP STORIES
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