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The proposed reduction in income-tax surcharge on corporates from 7.5 per cent to 5 per cent will boost Coal India Ltd's bottom line by approximately Rs 300 crore. CIL posted an after-tax profit of Rs 9,622 crore during the last fiscal.
According to sources, together with the pre-budget escalation in coal prices for the non-regulated sectors, the reduction will now boost CIL's net profit by approximately Rs 1,300 crore in the next fiscal.
The company has already reported to the stock exchanges that the price escalation would result in an additional revenue generation of Rs 6,200 crore in 2011-12 and Rs 650 crore during the January-March 2011.
Meanwhile, sources said the imposition of one per cent excise duty will escalate the price of coal by approximately Rs 12 a tonne, generating nearly Rs 500 crore for the Government.
The price of a Coal India share increased by over 3 per cent on Tuesday to close at Rs 338 at the BSE.
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