Financial Daily from THE HINDU group of publications
Tuesday, Jan 29, 2002
Financial Daily from THE HINDU group of publications Tuesday, Jan 29, 2002 |
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Industry & Economy
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Cement Concrete incentives for cement sector urged Our Bureau
NEW DELHI, Jan. 28 THE Associated Chambers of Commerce & Industry of India (Assocham) has urged the Finance Ministry to extend credit on equipment and consumables used for mining of limestone for the manufacture of cement, reduction in import duty on non-coking coal to 15 per cent and sops to boost cement and clinker exports. The chamber has pointed out that limestone mining is an integral part of cement manufacturing activity. However, the excise authorities do not permit Cenvat on mining equipment like dumpers, drilling machines and excavators which are used for the mining of limestone. Also, Cenvat is permitted only on consumption of explosives in limestone mines and not on other consumables in mining activity such as diesel, tyres, stores and spares used for mining equipment. The chamber has said that this is an anomaly since mining equipment and consumables in mining activity are essential for mining limestone, which is an essential raw material for manufacturing cement. Assocham also said that for greater productivity of cement plants and better quality of cement, imported non-coking coal with low ash content is necessary. The effective rate of import duty on non-coking coal, comprising basic duty, additional surcharge and special duty, has risen sharply from 21.5 per cent effective April 1999 to 30 per cent effective April 2001. While the surcharge on coal has been abolished in 2001, the "huge rate" of basic duty of 25 per cent levied in 2000 still continues. At the same time, the imported non-coking coal prices have increased while the rupee has depreciated against the major international currencies.
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