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, reported Business Standard
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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