NEW DELHI: India's three copper majors — Hindalco IndustriesBSE 2.42 %, Vedanta Ltd and Hindustan Copper Ltd—have warned the government that the sector is facing an imminent shutdown in the face of a surge in cheaper imports from Japan and Asean countries, which could jeopardise the Narendra Modi-led government's 'Make In India' initiative.
Operating at 75% of capacity, the industry has cautioned about further cuts in production that could impact 10,000 jobs, blaming freetrade agreements or FTAs, which would allow an influx of duty-free copper by 2021, for making the entire sector unviable.
The development assumes significance amid a tepid global commodity market that is seeing demand shrink as China's hunger for resources is slowing down in tandem with its growth. The copper industry's SOS call comes within a month of the Modi government decision to impose a 20% safeguard duty on import of some steel products for 200 days, after a similar clarion call from local steelmakers.
Source :economictimes.indiatimes.com
No comments:
Post a Comment