Proposed 5 pc duty on coal to impact power tariff: Assocham

Tuesday, May 10,

Fearing the proposed 5% countervailing duty (CVD) on coal would shoot power tariff, industry body Assocham today urged government not to levy it.*

Countervailing duty (CVD), also known as anti-subsidy duty, is an import duty imposed to neutralize the negative effects of subsidies. At present, there is a 5 per cent custom duty on non-coking coal.

Nearly two-third of power generation in the country is coal based and any such step would lead to an increase in power tariff by 13 paise per unit, it said.

“A further imposition of countervailing duty at 5 per cent will not only make imported coal-based power plants unviable, but also lead to a steep rise in power tariff,” Assocham Secretary General D S Rawat said in a letter to Finance Minister Pranab Mukherjee

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Source: The Economic Times