RoDTEP scheme blow for metal packaging

To boost exports, the government announced rates of tax refunds under the export promotion scheme RoDTEP for 8,555 products, such as marine goods, yarn, dairy items. But as per media, steel, chemicals and pharmaceuticals would not get the benefit of RoDTEP as they have “done well without” incentives.

The metal packaging industry, however, does not resonate with the recent move of the government. “Considering the market is already favouring the steel industry in terms of the demand, yet much is dependent on government policies, especially at a time when the industry is going through one of the toughest times at the moment due to the implementation of the Quality Control Order (QCO) on tinplate which is the main input for the metal packaging industry,” said a Metal Container Manufacturers’ Association (MCMA) press note.

It added, “Making the situation worse is the fact that even the RoDTEP scheme, does not favour the steel sector. It will surely be a setback for the Indian metal packaging industry which is a downstream product of steel U/Chapter 72/73 of HSN code.”
 
MCMA, therefore, highlights the need for urgent action and by considering the current state of affairs, has requested the ministry to include the steel sector in the RoDTEP scheme.