One of India’s largest business organizations wants to reduce India’s rising power rates by lessening the tax burden of power producers.
The Confederation of Indian Industry has submitted a memorandum to the Ministry of Finance asking the government to reduce to nil from 5 the customs duties on the non-coking coal used by thermal power generating plants.
CII contends that the import duties on non-coking coal are a reason for the increase in per unit production cost of electricity. Coal powers nearly two-thirds of India’s power stations.
Power sector is one of the main consumers of non-coking coal and nearly two-third of the electricity generation in the country is coal-based.
CII pointed out that imports of coking coal, mainly used by the steel industry, are exempted from basic customs duty while non-coking coal has to pay a 5% tariff.
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