Monday, 23 Jan 2012
Business Standard reported that the Indian government may ease import of coal to tide over the requirement for power generation companies and other infrastructure utilities.
Official sources said while Customs duty may not be completely rolled back, a partial rollback of the countervailing duty on imports done for power infrastructure projects is being considered by the finance ministry.
They added the consideration is for relaxing the five per cent CVD, if the import was specifically meant for thermal power generation or coal based power plants and related infrastructure projects. At present, there is a five per cent Customs duty on non coking coal, besides one per cent excise duty, announced on 130 items in the last Budget. This was done when the government proposed a levy of one per cent excise duty on 130 items without Cenvat credit.
If Cenvat credit is taken, then these goods will attract a tariff of 5%. This applies to all categories of coal imports lignite, peat, coke, tar, etc. They explained that CVD was imposed to provide a level field for domestic manufacturers and charged at a rate equal to the excise duty.
Cenvat credit means the credit availed by a goods manufacturer in the form of a deduction of input tax paid on the purchase of raw materials, fixed assets, packing material, etc, from the total tax payable to the government.
CVD is also called anti-subsidy duty. Besides industry representation, the power ministry has also suggested to the finance ministry for a relook into the coal import duty structure. It feels while global coal prices have gone up 35 to 40% additional import duty is adding to the cost.
(Sourced from BS)
Showing posts with label Indian Power Ministry. Show all posts
Showing posts with label Indian Power Ministry. Show all posts
Monday, January 23, 2012
Monday, December 12, 2011
Power equipment producers unhappy with 14% import duty
Mon, Dec 12, 2011
The struggle for domestic power equipment manufacturers against their Chinese counter parts is gathering steam. Sources tell CNBC-TV18 that they are not happy with the Power Ministry proposing only a 14% import duty on power equipments from China, reports Mehak Kasbekar.
This proposal has been on the back burner for a while and finally a draft Cabinet note has been floated by the Power Ministry. The Ministry note says that 5% will be charged on import duty, 5% of special additional duty and 4% of countervailing duty, totaling to 14%.
However, as we know, the Heavy Industries Ministry is not happy with it. Big names like BHEL were hoping that the import duty would at least be between 19-24%. The Maira Committee report which had done in-depth analysis of this had also recommended 14%, but additional duty on top of it would have taken it to between 19-24%.
Big companies that are hurt by import of Chinese equipments just want a level playing field, so sources say that the DIPP and Heavy Industries will be writing their comments this week voicing their displeasure with the draft Cabinet note.
Source : CNBC-TV18
The struggle for domestic power equipment manufacturers against their Chinese counter parts is gathering steam. Sources tell CNBC-TV18 that they are not happy with the Power Ministry proposing only a 14% import duty on power equipments from China, reports Mehak Kasbekar.
This proposal has been on the back burner for a while and finally a draft Cabinet note has been floated by the Power Ministry. The Ministry note says that 5% will be charged on import duty, 5% of special additional duty and 4% of countervailing duty, totaling to 14%.
However, as we know, the Heavy Industries Ministry is not happy with it. Big names like BHEL were hoping that the import duty would at least be between 19-24%. The Maira Committee report which had done in-depth analysis of this had also recommended 14%, but additional duty on top of it would have taken it to between 19-24%.
Big companies that are hurt by import of Chinese equipments just want a level playing field, so sources say that the DIPP and Heavy Industries will be writing their comments this week voicing their displeasure with the draft Cabinet note.
Source : CNBC-TV18
Tuesday, November 22, 2011
Power ministry seeks withdrawal of import duty on coal into India
Tuesday, 22 Nov 2011
FE reported that the Indian ministries of power and finance are likely to lock horns over a proposal to withdraw customs duty on imported coal.
Taking up the cudgels for power projects hit by the unprecedented increase in international coal prices, the power ministry has moved to push for removal of customs duty on coal to provide relief to power projects using imported fuel.
Apprehensive that the North Block may not be keen to entertain a proposal which entails revenue loss for the exchequer, the power ministry has moved to secure support of the Planning Commission on the issue.
Currently, a 5% basic customs duty is levied on coal.
(Sourced from financialexpress.com)
FE reported that the Indian ministries of power and finance are likely to lock horns over a proposal to withdraw customs duty on imported coal.
Taking up the cudgels for power projects hit by the unprecedented increase in international coal prices, the power ministry has moved to push for removal of customs duty on coal to provide relief to power projects using imported fuel.
Apprehensive that the North Block may not be keen to entertain a proposal which entails revenue loss for the exchequer, the power ministry has moved to secure support of the Planning Commission on the issue.
Currently, a 5% basic customs duty is levied on coal.
(Sourced from financialexpress.com)
Friday, November 11, 2011
Power minister urge power companies to procure imported coal
Friday, 11 Nov 2011
Ministry of Power has asked power utilities across the country to procure imported coal as per given targets in view of the increasing shortage of coal from domestic sources and directed Coal India to arrange coal supply to newly commissioned units.
As per CEA report of November 7 there are 38 thermal plants in country which have coal stock at super critical level implying the coal stock is for less than 4 days. 4 NTPC plants have no coal stock and these are Singrauli, Mejia, Koradama and Durgapur.
Haryana Rajasthan Uttar Pardesh, Andhra Pardesh, NTPC and other utilities have been asked to expedite placement of orders for import of the entire quantity of coal as per their assigned targets. Import of coal is not an easy job in itself moreover pricing of coal is also an important parameter. The costly coal imports lead to higher generation cost and utilities are not able to recover the additional investments made.
NTPC is going for direct coal import to tide over the critical coal stocks at a number of its thermal plants. Gujarat had to back down thermal generation to the extent of 15% due to the high cost of imported coal.
The acute coal shortages and poor quality of coal supplied to thermal stations was also reviewed in the meeting .It may be mentioned that 65% of the country's total power generation is met by thermal generation and of which 85% is coal based generation.
In Haryana Panipat and khedar have coal stock of 2 days and one day respectively. Moreover both plants normally complain about poor coal quality and high transit losses. The oil consumption at the plants has increased due to poor coal quality.
Ministry of Power has sought month wise data from utilities regarding gross calorific value of the coal received at power stations, delivered price along with transportation cost and information with regard to imported coal.
The power utilities are importing substantial amounts of coal to meet their requirements and many have failed to meet their annual targets on account of rising coal costs.
(sourced from Punjabnewsline)
Ministry of Power has asked power utilities across the country to procure imported coal as per given targets in view of the increasing shortage of coal from domestic sources and directed Coal India to arrange coal supply to newly commissioned units.
As per CEA report of November 7 there are 38 thermal plants in country which have coal stock at super critical level implying the coal stock is for less than 4 days. 4 NTPC plants have no coal stock and these are Singrauli, Mejia, Koradama and Durgapur.
Haryana Rajasthan Uttar Pardesh, Andhra Pardesh, NTPC and other utilities have been asked to expedite placement of orders for import of the entire quantity of coal as per their assigned targets. Import of coal is not an easy job in itself moreover pricing of coal is also an important parameter. The costly coal imports lead to higher generation cost and utilities are not able to recover the additional investments made.
NTPC is going for direct coal import to tide over the critical coal stocks at a number of its thermal plants. Gujarat had to back down thermal generation to the extent of 15% due to the high cost of imported coal.
The acute coal shortages and poor quality of coal supplied to thermal stations was also reviewed in the meeting .It may be mentioned that 65% of the country's total power generation is met by thermal generation and of which 85% is coal based generation.
In Haryana Panipat and khedar have coal stock of 2 days and one day respectively. Moreover both plants normally complain about poor coal quality and high transit losses. The oil consumption at the plants has increased due to poor coal quality.
Ministry of Power has sought month wise data from utilities regarding gross calorific value of the coal received at power stations, delivered price along with transportation cost and information with regard to imported coal.
The power utilities are importing substantial amounts of coal to meet their requirements and many have failed to meet their annual targets on account of rising coal costs.
(sourced from Punjabnewsline)
Monday, March 14, 2011
Power ministry rejects conditional nod for Orissa UMPP coal fields
Monday, 14 Mar 2011 |By ET
The Indian power ministry has rejected the environment ministry's precondition of shelving two coal mining projects as a tradeoff for granting clearance to a third coal block of the 17,000 crore ultra mega power project at Bedabahal in Orissa. This development would make another deferment of bidding for the 4000 MW project inevitable.
Indian environment minister Mr Jairam Ramesh has granted mining approval to the coal block on the condition that NTPC and Orissa Power Generation Corporation give up their respective coal blocks, Dulanga and Manoharpur, in the vicinity.
While NTPC will mine the Dulanga block for its various power projects, Orissa Power Generation Corporation will use coal from the Manoharpur blocks to fire its 1,320 MW project at Jharsuguda.
Indian environment minister Mr Jairam Ramesh has granted mining approval to the coal block on the condition that NTPC and Orissa Power Generation Corporation give up their respective coal blocks, Dulanga and Manoharpur, in the vicinity.
While NTPC will mine the Dulanga block for its various power projects, Orissa Power Generation Corporation will use coal from the Manoharpur blocks to fire its 1,320 MW project at Jharsuguda.
Subscribe to:
Posts (Atom)
Posts
