Should Import Duty on Coking Coal be Removed to Impart Impetus to the Indian Steel Industry?

Imposition of Import Duty on Coking coal in India seems to bear less meaning, if the demand and supply scenario in the country is taken into consideration.

Coking coal, used predominantly by the steel industry, is inadequate in domestic supply in the country, so imports are depended upon.

As a consequence of healthy steel production in the country, imports of the coal variant have risen successively during the last few fiscals.

Source: SteelMint Research  

Coking coal imports into the country will further rise as steel production is going to rise significantly. The Government of India is laying stress on lifting the country to the second largest steel producing country in the world in the next two to three years. Currently, India is the third largest steel producer in the world with an annual production capacity of around 100 MnT.

A parliamentary committee has recently suggested for removal of the existing 2.5% import duty on Coking coal alongwith the clean energy cess of INR 400/MT to help invigorating competitiveness in the Indian steel industry.