The Indian Metallurgical Coke Manufacturers’ Association (IMCMA) has demanded removal of the existing import duty and Clean Energy Cess on Coking Coal to provide complete relief to the Indian Met Coke industry.
No doubt, imposition of Anti Dumping Duty on Met Coke imports into India from China and Australia at the rate of USD 25.20/MT and USD 16.29/MT respectively is expected to play a major role in reviving the Indian Met Coke industry; but the path to the revival of the industry in the country is not without hindrances.
The association has brought to the fore that the prevailing import duty of 2.5% on Coking Coal and the Clean Energy Cess of INR 400/ton on the coal variant are not only taking a toll on the financials of the Indian Met Coke industry but also are off-setting the entire benefits of the Anti Dumping Duty.
Since, the domestic supply of the coal variant is inadequate to cater to the domestic demand, imports are imperative.
Source: CoalMint Research
The association also said that since for the production of 1 ton of Met Coke, 1.5 ton of Coking Coal is required; hence, price of Met Coke has to be at least 1.5 times the Coking Coal price to profitably account for the conversion cost. With spot Coking Coal prices hovering in excess of USD 300/MT, the import duty and the Clean Energy Cess are posing as grave hindrances to the country’s Met Coke producers in their recovery path, the association said.
The association has thus appealed to the Indian government to remove the import duty as well as the Clean Energy Cess on the coal variant.
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