Due to high global price and shortage of domestic Coal ,
India may consider easing the import duty over coal to support the power
generation companies and infrastructure utilities.
According to an official source, the government may not roll
back the customs duty completely while the Finance Ministry has considered
partial roll back of countervailing duty (CVD) on imports.
At present, the government has imposed 5% customs duty on
non-coking Coal and 1% excise duty.
The government is considering to ease the 5% CVD on imports
if it is done for power generation purpose.
Currently, the global prices of coal has gone up 35-40% and
with this import duty, the commodity turns costly for the companies.
Recently, the Indonesia, Australia, the major exporters of
coal had revised their pricing policies over coal and it is also worrying the
power industry.
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