Coal news and updates

‘Re-consider’ hike in customs duty on coal: JSW Steel

July 11: JSW Steel Ltd feels there is a case to re-consider the imposition of 2.5% customs duty and 2% countervailing duty (CVD) on coking coal and increase in duty on steam coal by 0.5% in view of the shortage of coal in the country.

“In view of the current shortage of domestic coal for both the steel and power sectors, increase in the basic customs duty for coking coal from nil to 2.5% and for steam and bituminous coal from 2% to 2.5% requires to be reconsidered,” Joint Managing Director and Group CFO of JSW Steel, Seshagiri Rao, said in a statement.

Union Budget 2014-15 presented on July 10 had restructured the customs duty on imported coal, thereby introducing 2.5% basic customs duty and 2% CVD on all types of coal.

Earlier, there was a 2% basic customs duty and 2% CVD on imported steam coal, nil duty on coking coal, but 5% basic customs duty and 6% CVD on anthracite coal and PCI coal.

Rao, however, said the 10-year tax holiday to the undertaking which begin generation, distribution and transmission of power by March 31, 2017 will bring in stability in policy and help investors plan their investments better.