Parliamentary committee indicates to remove duty on import of coking coal and scrap clean energy cess
Q. Parliamentary Committee chaired by whom suggested removal of 2.5 percent duty on import of coking coal as well as scrapping of clean energy cess of INR 400 per tonne?- Published on 11 Aug 16a. Rakesh Singh
b. Rakesh Kumar
c. Rakesh Kumar Singh
d. None of the above
ANSWER: Rakesh Singh
A Parliamentary committee suggested the removal of 2.5 percent duty on import of coking coal and scrapping of clean energy cess of INR 400 a tonne as measures stand in the way of competitiveness of domestic steel firms
- Standing Committee on Coal and Steel chaired by Rakesh Singh pointed that expenditure by Indian steel companies on research and development remained 0.05-0.5 percent of their sales turnover lower than 1-2 percent by those in China, South Korea and Japan.
- Committee also found at rate of per KWH in power in India, domestic steel producers are at a disadvantage of INR 800-900 per tonne as compared to steel producers in China, Japan and South Korea
- Certain levies and duties in the form of District Mineral Fund, National Mineral Expansion Trust, import on raw material such as coking coal and levy on clean energy cess are imposed on Indian steel producers.
- Investments in R&D, works of companies like SAIL and TATA Steel were lauded. Committee recommended that Indian steel companies should benchmark R&D spending with internationally prevalent best practices in the sector
