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Wednesday, 25 August 10
GOVT SHOULD ALLOW DUTY-FREE IMPORT OF THERMAL COAL: ASSOCHAM


Industry body Assocham Wednesday said the government should allow duty free import of thermal coal to bring down power tariffs in the country.

"The government should bring down customs duty on import of steam coal for coal-based power plants so that power generated reach out to masses at affordable rates," the chamber said in a statement.

Import duty on thermal (steam) coal is five percent.

Power tariffs in the country are already very high, it said.

"The levy of customs duty only leads to an increased cost of generating power, which will have a cascading effect on all the goods and services," it said.

It said, as thermal power plants would be a major source for generating electricity, country's dependence on coal import would continue to grow, in case production from captive blocks do not come as envisaged.

The current demand-supply gap is estimated at 80 million tonnes and likely to double in the next few years.

During April-December 2009, the consumption of coal by power sector was 271.0 million tonnes, Assocham said. (PTI)



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Friday, 31 December 10
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