You are here: Home » Budget » Run-up » Economy
Business Standard

Pvt power firms ask imported coal to be exempted from customs duty

As part of its budget expectations, the Association of Power Producers has asked for exemption in BCD and CVD on imported coal

Press Trust of India  |  New Delhi 

Private power producers have sought customs duty relief on imported coal for thermal plants, saying the levy is "increasing the cost of electricity generation and burdening the common man".

At present, coal imports attract 2 per cent Basic Customs Duty (BCD) and Countervailing Duty (CVD) each..

Read our full coverage on Union Budget

As part of its expectations, the Association of Power Producers (APP) has asked for exemption in BCD and CVD on imported coal.

APP represents as many as 20 private power companies.

Stating that private firms are forced to import the dry fuel as domestic coal is insufficient to meet their requirement, APP said, "Since there is no duty on electricity on the output side, any duty imposed on procurement of coal would be a cost for power companies."

"BCD and CVD should be nil rated for coal imported for the usage in thermal power plants."

APP has said that the present duty structure is "unintentionally" increasing the cost of power generation and impacting the common man.

The private power producers have also sought exemption of customs duty on fly ash for a power plant set up in SEZ.

"Fly ash has no value and many times the project developers have to pay for disposal of the fly ash while also complying with terms of MoEF for disposal of fly ash. There is no rationale on charging duty on such an item," APP said.

Meanwhile, Anil Chaudhry, Country President and Managing Director, Schneider Electric India said, "The growth of the Indian economy, to a great extent, will depend on the nation's openness and adaptability to energy security. To achieve this it will require priority sector lending status under RBI guidelines.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sun, February 08 2015. 11:15 IST
.