The Alkali Manufacturers“ Association of India (AMAI), representing the interests of the caustic soda, chlorine and soda ash industry, has suggested to the Government of India to look favorably on pr…
The Alkali Manufacturers“ Association of India (AMAI), representing the interests of the caustic soda, chlorine and soda ash industry, has suggested to the Government of India to look favorably on proposals forwarded by the Kelkar Committee about certain key issues affecting the industry. AMAI, in its representations to Dr Vijay Kelkar, Advisor to the Minister of Finance and Chairman, Task Forces on Direct and Indirect Taxes has suggested maintaining the minimum 20% import duty on soda instead of being reduced to 10% in order to protect the industry from cheap imports. Imports of soda ash from the US would undercut domestically produced soda ash as US production costs are 50% lower. Other suggestions from the AMAI include: a reduction of import duty on raw materials to the soda ash industry like silica, limestone and coal to 5% in 2004-2005 from the present 25% ; a gradual reduction in customs duty on caustic soda ie by 5% per year from the present 30%; categorisation of caustic soda as a finished products under Chapter 25 of the Customs Tariff; reduction in import duty of captive power plants to 5% from the present 25%; and duty on fuel oil used for power generation to be less than that on caustic soda. Currently, the chlor-alkali industry generates annual revenues of INR 7 billion from excise duty alone. However, it consumes 3000 units of power to produce 1 tonne of caustic soda and 880 kgs of chlorine.