The Committee on Public Enterprises, chaired by Shanta Kumar, also rapped the state-run aluminium maker for failing to achieve its capacity utilisation programmes.
"Committee notes with serious concern that import duties on aluminium and aluminium scrap are having an adverse impact on the profitability of NALCO's production business.
As deposed by Mines Secretary, out of total aluminium consumption in the country, 55 per cent is met from aluminium scrap and 45 per cent through aluminium, on which the import duties are 2.5 per cent and 5 per cent respectively, resulting in cheap imports from countries like China," it said.
As a result, the companies including Nalco are going for cost-cutting measures as well as retrenchments and laying-off workers to survive, it pointed out.
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The panel said it feels that apart from survival of the industry, this is an alarming scenario for factory workers and hence an urgent action from the government is warranted.
"They (Committee) have been given to understand that Mines Ministry has already been pursuing the matter to raise import duty to 10 per cent on both aluminium and aluminium scrap with the Finance Ministry as well as the Prime Ministers Office (PMO)."
"The committee agree with the move in the interest of aluminium companies like Nalco since their domestic market must not be dominated by cheap metal and metal scrap imports.
"The committee desire the Mines Ministry to convey their recommendation to the Finance Ministry and PMO. The committee desire to be apprised of the progress on the matter in due course," it said.
On capacity utilisation by Nalco, the committee said the details of target of capacity utilisation and actual production from 2010-11 till date shows that none of the products of NALCO could achieve target capacity utilisation in any year.
"Mines Secretary, however, apprised the committee during evidence that the capacity utilisation of the company was deliberately kept low at 71 per cent to optimise realisation keeping in view the sluggish demand for the metal, depressed market situation, etc," it said.