Bharat Goenka, CFO – Aluminium and Power, Vedanta, in an interview with CNBC-TV18, said despite the slowdown, there is hope that with monsoon behind us, the festive season ahead and the government’s $100 billion infrastructure thrust, the company would be “back on track to register a strong double-digit growth in India.”
He said high taxation around the power sector is the biggest challenge as power is the biggest component of aluminium industry.
“The tax which is imposed on the power industry, especially if you are making your own power, is close to $450 per tonne, which is around 20 percent of the costs. While if you import aluminium into India, you only pay 7.5 percent import duty but if you manufacture aluminium in India, you end up paying close to 20 percent duty.
So there is an inverted duty structure in the aluminium industry and that remains the key challenge in India,” he said. Read more
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