Aluminium industry has sought support from the government for notifying at least 5 per cent remission rate for the sector under RoDTEP Scheme to achieve global competitiveness. The industry aims to realize its potential of doubling exports worth USD 10 billion Forex earnings for the country.
The Ministry of Finance announced implementation of RoDTEP Scheme and extending benefit to all export goods w.e.f. January 1, 2021.
The announcement came as a huge relief for exporters post withdrawal of the MEIS and is expected to provide the much needed impetus to boost Indian exports.
However, the pendency of notifying the sector-wise remission rates under RoDTEP Scheme is creating a precarious situation and uncertainty for Indian exporters due to ambiguity w.r.t. pricing of goods and thereby impacting Indian exports, according to a report by Business World. The recently announced Union Budget 2021-22 has kept provision of Rs 13,000 Cr for RoDTEP, which has been significantly curtailed from Rs 50,000 Cr allocation for RoDTEP Scheme when first announced by the Finance Minister in Sept, 2019.
The situation for exporters further aggravates with withdrawal of MEIS. Till date the exporters are unable to avail the MEIS benefit for exports already made during FY-20 and FY-21 (Apr-Dec) due to blocking of online MEIS module for applying claims. This has resulted in blockage of significant funds for already stressed non-ferrous metal sector exporters.
