Govt for PPP policy framework with Coal India to curb imports
1 March 2013 5:43 AM IST
There is a need for devising a policy on public-private-partnership framework with Coal India Limited as one of the partners to reduce India's growing dependence on imported coal, Finance Minister P Chidambaram said on Thursday.
The country's power sector is facing fuel crisis on account of acute coal shortage, making it necessary to import the commodity.
'In the medium to long-term, we must reduce our dependence on imported coal. One of the ways forward is to devise a PPP (public-private partnership) policy framework, with Coal India Ltd (CIL) as one of the partners,' Chidambaram said.
The measure, he said, will lead to increase in domestic coal production for supplying to power producers and other consumers of fossil fuel.
The government and the Coal Ministry will announce the 'government's policies in this behalf in due course', Chidambaram added.
The government is working on a proposal under which CIL, which accounts for over 80 per cent of the domestic coal production, will engage private sector companies to undertake mining on behalf of the PSU.
Besides, the Planning Commission in a letter to Coal Minister Sriprakash Jaiswal had earlier said: 'It should be possible to expand coal mining operations rapidly through a PPP model that can enable a fair and transparent framework based on competitive bidding.'
CIL, in which government has a majority stake, has already done some preliminary work on the new model.
The PSU, which accounts for over 80 per cent of the domestic coal output, produced only 435.84 million tonne (MT) in fiscal 2011-12, against the revised target of 447 MT.India's coal imports, which shot up to 100 million MT from April to December last year, will reach 185 MT by FY17.
NO EXPORT DUTY FOR GALVANISED STEEL MAKERS LIKE SAIL, TATAS
Galvanised steel makers like SAIL and Tata Steel will reap benefits with the Budget 2013-14 bringing down export duty on certain items to nil from 7.5 per cent earlier.
Finance Minister P Chidambaram in his Budget has proposed to extend ‘full exemption from export duty’ to galvanised steel sheets falling under certain sub-headings with effect from 1 March 2011 retrospectively.
Galvanised sheets are coated with zinc metal and are used in roofing, panelling and automobile bodies among others.Indian steel makers produce around four million tonnes of galvanised steel in a year, but could not make much headway in international markets as it was uncompetitive for them due to the prevailing duty.‘The reduction in the duty to nil will help them to make exports competitive,’ an industry source said.
The Finance Minister has also reduced basic customs duty on stainless steel wire cloth stripe from 10 per cent to five per cent and from 7.5 per cent to five per cent on wash coal for use in the manufacture of catalytic converters and their parts.He, however, increased excise duty on stainless steel ‘Patta Patti’ to Rs 40,000 per machine per month from Rs 35,000 earlier.
The country's power sector is facing fuel crisis on account of acute coal shortage, making it necessary to import the commodity.
'In the medium to long-term, we must reduce our dependence on imported coal. One of the ways forward is to devise a PPP (public-private partnership) policy framework, with Coal India Ltd (CIL) as one of the partners,' Chidambaram said.
The measure, he said, will lead to increase in domestic coal production for supplying to power producers and other consumers of fossil fuel.
The government and the Coal Ministry will announce the 'government's policies in this behalf in due course', Chidambaram added.
The government is working on a proposal under which CIL, which accounts for over 80 per cent of the domestic coal production, will engage private sector companies to undertake mining on behalf of the PSU.
Besides, the Planning Commission in a letter to Coal Minister Sriprakash Jaiswal had earlier said: 'It should be possible to expand coal mining operations rapidly through a PPP model that can enable a fair and transparent framework based on competitive bidding.'
CIL, in which government has a majority stake, has already done some preliminary work on the new model.
The PSU, which accounts for over 80 per cent of the domestic coal output, produced only 435.84 million tonne (MT) in fiscal 2011-12, against the revised target of 447 MT.India's coal imports, which shot up to 100 million MT from April to December last year, will reach 185 MT by FY17.
NO EXPORT DUTY FOR GALVANISED STEEL MAKERS LIKE SAIL, TATAS
Galvanised steel makers like SAIL and Tata Steel will reap benefits with the Budget 2013-14 bringing down export duty on certain items to nil from 7.5 per cent earlier.
Finance Minister P Chidambaram in his Budget has proposed to extend ‘full exemption from export duty’ to galvanised steel sheets falling under certain sub-headings with effect from 1 March 2011 retrospectively.
Galvanised sheets are coated with zinc metal and are used in roofing, panelling and automobile bodies among others.Indian steel makers produce around four million tonnes of galvanised steel in a year, but could not make much headway in international markets as it was uncompetitive for them due to the prevailing duty.‘The reduction in the duty to nil will help them to make exports competitive,’ an industry source said.
The Finance Minister has also reduced basic customs duty on stainless steel wire cloth stripe from 10 per cent to five per cent and from 7.5 per cent to five per cent on wash coal for use in the manufacture of catalytic converters and their parts.He, however, increased excise duty on stainless steel ‘Patta Patti’ to Rs 40,000 per machine per month from Rs 35,000 earlier.
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