With acute fuel shortage hurting projects, private power producers, including Reliance and Tatas, have asked the Finance Ministry to abolish five per cent duty on coal imported for power plants.
Presenting a slew of proposals to be considered for the 2012-13 Budget, the Association of Power Producers (APP) has also asked for customs duty exemption for various facilities such as coal transportation required for mega power projects.
“Imported non-coking coal for thermal power projects attracts five per cent customs duty… Request to issue an exemption notification to reduce the customs duty from five per cent to nil,” APP said in a recent letter to Department of Revenue Secretary R S Gujral.
The private power producers noted that there is huge shortage of non-coking coal and without imported non-coking coal it is very difficult to run the power plant.
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