SteelMint in a conversation with the Experts of the Industry has came up with the following outcome
Implementation of Duties
on Steam Coal, disadvantage for the Power Industry
Mohit Aggarwal, CMD, AASTHA Group, Mumbai
“Announcement of duties (Custom & CVD) on steam coal (below 5833 GCV) in the Union Budget 2013-14 will affect the power producers in
the country leading to increase in power charges which will be passed on to the
consumers.
CIL is not able to fulfill the demand of Coal in domestic (India) market which will ultimately lead the users of coal to use imported
coal. Hence, the market for imported coal in India in the near term looks
positive. “
Clarification in the
duty 'positive' with negative effect on the economy
Tejas Mehta, Director, HJM Fuels, Ahmedabad
“Clarification in the custom duty has proved positive to the
users of coal (above 5833 GCV) as they have to pay lesser duties after the
announcement of the budget compared to the previous duties of 11% (6% CVD + 5% Customs). On the other hand, it will prove a disadvantage to the power industry
as the power generation charges will increase leading to increase in the power
charges by 0.3-0.7 paise, having its cascading effect on the economy leading to
inflation.”
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