Group wants to eliminate import duties on coking coal

One of India’s largest business organizations wants to reduce India’s rising power rates by lessening the tax burden of power producers.

The Confederation of Indian Industry has submitted a memorandum to the Ministry of Finance asking the government to reduce to nil from 5 the customs duties on the non-coking coal used by thermal power generating plants.

CII contends that the import duties on non-coking coal are a reason for the increase in per unit production cost of electricity. Coal powers nearly two-thirds of India’s power stations.

Power sector is one of the main consumers of non-coking coal and nearly two-third of the electricity generation in the country is coal-based.

CII pointed out that imports of coking coal, mainly used by the steel industry, are exempted from basic customs duty while non-coking coal has to pay a 5% tariff.