Centre Acts to Keep Factories Running, Eases Import Duties on Key Materials

The Department for Promotion of Industry and Internal Trade (DPIIT) is rolling out measures to ensure industrial production remains steady amid global challenges. Key actions include reducing Basic Customs Duty to zero on critical raw materials like polyolefins and certain chemicals to ease shortages. The government has also extended compliance deadlines for induction cooktops and boosted fuel allocations for sectors like glass and ceramics. These steps aim to maintain supply chain stability and support key manufacturing industries through stakeholder consultations and inter-ministerial coordination.

Key Points: Govt Steps to Ensure Steady Industrial Production, Supply Chains

  • Duty cuts on key petrochemicals & chemicals
  • Extended deadlines for induction cooktops
  • Enhanced LPG/PNG allocations for industries
  • Support for paint, tyre, and paper sectors
  • Temporary boiler certificate extensions
3 min read

Centre taking steps to ensure industrial production stays steady

DPIIT implements measures to maintain industrial activity, stabilise supply chains, and ease raw material shortages by cutting import duties on critical inputs.

"actively implementing a range of regulatory and facilitative measures to ensure continuity of industrial activities - Official Statement"

New Delhi, April 22

The Department for Promotion of Industry and Internal Trade is actively implementing a range of regulatory and facilitative measures to ensure continuity of industrial activities, maintain supply chain stability, and support key manufacturing amidst the evolving West Asia situation, according to an official statement issued on Wednesday.

The measures aim to ensure the uninterrupted availability of fuel and essential inputs while addressing operational challenges faced by the industry. DPIIT continues to engage closely with stakeholders, and the actions outlined represent measures taken to date.

Stakeholder consultations were also held by DPIIT in coordination with the Department of Commerce and the Ministry of Power to address demand-supply challenges in the induction cooktop sector and assess immediate measures required to stabilise supply and prices.

Mandatory energy efficiency and Quality Control Order timelines for induction cooktops have been extended, and corresponding amendments and eGazette notifications were issued on April 6 in view of manufacturers' difficulty in meeting earlier deadlines.

Based on inter-ministerial consultations and a Joint Working Group meeting, the Basic Customs Duty (BCD) was reduced to zero on polyolefins HDPE, LLDPE, and PPCP to ease raw material shortages.

Allocation of industrial LPG was enhanced from 50 per cent to 70 per cent of their pre-March 2026 bulk non- domestic LPG consumption.

The DPIIT also conveyed paint industry raw material requirements to the Ministry of Petroleum and Natural Gas, which instructed Indian Oil to supply butyl acrylate equivalent to 0.2 TMT/day of propylene. It has also provided the requirements of polypropylene copolymer and buyers.

Further, the DPIIT, vide letter dated April 16 to the Ministry of Petroleum, provided industry-wise requirement of petrochemical raw materials and packaging raw materials for the paint Industry.

To address shortages of critical chemicals for the paper industry, BCD was reduced to zero on styrene, methanol, and ABS, ensuring stability in raw material supplies.

Similarly, to address shortages of critical chemicals for the tyre industry, BCD was reduced to zero on chemicals and solvents - such as polybutadiene, styrene butadiene rubber, and resins used as raw materials in tyre manufacturing. Customs duty was also reduced on inputs for the leather and footwear sector.

In the case of the glass industry, steps were taken to ensure uninterrupted furnace operations with the allocation of PNG, at 80 per cent of the average consumption of the previous six months, was notified and allocation of industrial LPG was enhanced from 50 per cent to 70 per cent of their pre-March 2026 bulk non- domestic LPG consumption.

Besides, additional LPG and PNG are also being supplied to the ceramic sector so that production is not disrupted.

Further, in order to reduce oil consumption, a three‑month temporary extension of boiler certificates has been allowed for power plants and other high‑capacity boilers (≥100 TPH), subject to verification of operating parameters and satisfactory external inspection by Competent Persons.

Three‑month temporary extension of boiler certificates has also been given for high‑capacity boilers in major oil and gas units, including refineries, petrochemicals and fertiliser plants, subject to prescribed safety safeguards, parameter verification and satisfactory external inspection.

Besides, diversification in fuel usage and the use of alternative fuels across industrial sectors is being promoted.

- IANS

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Reader Comments

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Priya S
Good to see inter-ministerial coordination. The focus on paint, paper, tyre, and glass industries is crucial as they employ lakhs of people. Ensuring LPG and PNG supply prevents factory shutdowns. My brother works in a ceramic unit in Morbi, and such measures directly impact job security.
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Rohit P
While the steps are welcome, I hope this isn't just reactive firefighting. We need a long-term strategy for raw material self-reliance (Atmanirbharta) so that global tensions don't threaten our industry every few years. Also, promoting alternative fuels is the right way forward.
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Sarah B
The extension of boiler certificates for three months seems like a practical move to avoid operational halts in power and oil & gas. Safety safeguards mentioned are critical though. Overall, a comprehensive set of measures covering multiple sectors.
K
Kavya N
As a small business owner sourcing packaging materials, the reduction in BCD on chemicals for the paper industry is a relief. Costs were rising sharply. Hope these benefits trickle down quickly and aren't absorbed by middlemen. The government must monitor this closely.
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Michael C
The focus on stakeholder consultation is key. Often policies are made in isolation. Engaging with manufacturers before setting deadlines, as seen with induction cooktops, leads to more realistic regulations. This collaborative approach should be the standard.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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