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| Steel and cement manufacturers can now explore the possibility of importing coking coal with ash content above 12 per cent and use it directly in steel making or cement manufacturing activities. |
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| As of now a negligible amount of coke with high ash content is imported into the country as it was not viable under the existing the duty. |
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| Ash content above 8 per cent in the international market is considered high but it is acceptable to users in India. |
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| Coal with ash content above 12 per cent is much cheaper in the overseas markets. |
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| "A 15 per cent import duty on coking coal with 12 per cent ash content was rendering use of such coal uneconomical given the international scenario where prices have been shooting up. Now that the duty has been reduced to 5 per cent, we would explore the possibility of importing such coal," Tata Steel officials said. |
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| High ash coking coal was ruling around $110 per tonne in the world market, but availability was uncertain, claimed Coal India Ltd officials. |
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| "Although this is not going to affect CIL, the move is welcome because it will help meet the demand-supply gap in India," he added. |
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| Coking coal with ash content of 12 per cent would translate into ash content of 14 per cent for coke, while 14 per cent ash in coal would mean a 18 per cent ash in coke, according to existing industry benchmarks. |
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| Coke can be directly used in new generation blast furnaces. |
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| "This will provide importers some relief for they will now be able to import and use coal without any blending," Tata Steel officials said. |
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| "Many users can procure coke at lower prices and this would improve margins for these manufacturers," explained Gautam Kumar, president of Coal Consumer Association. |
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