Budget 2016 Announcements will Boost Affordable Housing Sector, but No Relief for Suppliers such as the Non-Ferrous Metals Sector: Mr. Suneel Mardia, Founder and CEO, Mtlexs

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Mumbai, Maharashtra, India

Housing Industry major consumer of Non-ferrous Metals – Aluminium and copper
Need reforms to incentivise the Non-Ferrous Metals industry
Copper sector needs to be brought at par with other non ferrous metals

“The Government’s efforts to boost the affordable housing sector is commendable, however, NO benefits to the suppliers of housing industry such as the Non-Ferrous Metals sector may act as a drawback,” says Mr. Suneel Mardia, Founder and CEO, Mtlexs.

NFM (Non-Ferrous Metals) products are mainly used in defense, railways, metrorail, power plants, construction and housing etc. It is an integral component for these verticals, which are the backbone of the MAKE IN INDIA initiative of the government.

Housing industry is one of the major users of aluminium and copper, using around 31 per cent of these metals, worldwide. “Copper and aluminium suppliers to the affordable housing industry should have been incentivised with measures such as tax rebates. This would not only further boost the affordable housing industry, but also help in growth of the domestic non-ferrous metal industry,” Mr. Mardia added. “Mtlexs welcomes the measures provided by the government for the non-ferrous metal industry. However, a lot still needs to be done in bringing all players of the domestic non-ferrous at par and also in supporting the industry to withstand the current global economic pressure.”

In Union Budget 2016, the government proposes to increase the basic custom duty for primary aluminium from existing 5 per cent to 7.5 per cent, other aluminium products from existing 7.5 per cent to 10 per cent and zinc alloys from existing 5 per cent to 7.5 per cent. This is expected to provide a breather to the aluminum and zinc industries, which have been reeling under immense pressure due to cheap imports. However, the import duty on Aluminium Scrap is retained at current level.

Import Duty on brass scrap is reduced from 5% to 2.5 %, which is a very positive step for the Indian manufacturers.

No measures have been provided for the Copper sector event though it is the worst hit due to INVERSE Duty structure because of duty free import under FTA.

Export Duty on Bauxite is reduced from 20% to 15% and no export duty levied on Alumina export. This will have a negative impact on the Indian Primary producers, as this will increase exports, leaving lower quantity of raw material available to Indian Producers.

Mr. Mardia said, “No imposition of safeguard duty or anti-dumping duty, no increase in import duty of finished goods of copper, reduction of export duty on Bauxite and Nil Export Duty on Alumina are the negative factors of the current budget for the Non-Ferrous Metals Industry. The remaining budget implications are very positive.”

About Mtlexs Group

Mtlexs is the first of its kind online marketplace catering to the niche Non-Ferrous Metal industry, with two business units, Mtlexs Research and Mtlexs Spot. Mtlexs seeks to serve as a one-stop shop for the Non-Ferrous Metals Industry and its mission is to solve business pain points of Technology, Marketing and Finance as well as help enable a future ready status for all stakeholders in the NFM Ecosystem.

Mtlexs’ management has been an intrinsic part of the NFM industry for over 30 years with a combined experience of over 150 man-years and has evolved into a torchbearer of knowledge and insights, which it shares with fellow members of the NFM ecosystem.

Mtlexs currently clocks 15,000 digital subscribers from 109 countries with more than 500,000 hits per month. The portal is technologically advanced and easy to use, while being scalable to incorporate any new developments.

Suneel Mardia, Founder and CEO, Mtlexs

Suneel Mardia is the founder of Mtlexs and he heads the company in the position of CEO. He has an experience of more than 30 years in the NFM industry spanning import and export trade, marketing, business processes, and materials logistics.