Industry & Economy
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Coke & Metalurgical Coke
Duty cut on high ash content coking coal may benefit manufacturers
Our Bureau
Kolkata
,
March 2
THOUGH the reduction of custom duty on high ash (12 per cent and above) coking coal from 15 per cent to 5 per cent, as proposed by the Union Budget, is expected to give some relief to coke manufacturers particularly in the coastal region, such reduction will have no impact on domestic coking coal producers.
In fact, domestic producers are happy because a section of coal-starved coke makers and mini blast furnace owners may find an opportunity to consider afresh imports of high ash coking coal, even though prices are now ruling high in the international market.
Incidentally, the Customs duty on low ash coking coal was completely withdrawn last year.
Informed sources indicate that two State-owned coal companies - Bharat Coking Coal and Central Coalfields Ltd - largely produce coking coal with ash content ranging between 15 per cent and 20 per cent, or even higher.
But they jointly produce about 10 million tonnes per annum against the country's requirement of over 22 mt.
It is thus a problem for them to meet even 50 per cent of the country's coking coal requirement.
On the other hand, they have no option but to expand production capacity because of the limited proven coking coal reserves in the country.
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