Budget 2012: Coal exempted from 5% customs duty

In a move to provide some relief to the Power companies,
Thermal Coal has been exempted from the Import duty of 5% for 2 years in the current
Budget 2012-2013.

Industry bodies such Assocham had already sought for the exemption
in the basic customs duty for Thermal or Steam Coal before the Budget
announcements. So, the scrapping of the import duty is just as per the industry
expectations.

The cut in import duty will provide some relief to the ailing
Power companies who have been continuously facing the shortage of Coal and have
been meeting up with many high officials to get something worked on the disrupted supply of Coal.