DELHI, JUNE 19 : THE Associated Chambers Of Commerce and Industry of India
(ASSOCHAM) has urged the Central Board of Excise and Customs (CBEC) to exempt
import of coal from customs duty for modern iron and steel plants, coming out
with latest technologies like Corex, Finex and PCI.
a communication to the Chairman CBEC, the Chamber has pointed out that coal, imported
for traditional iron and steel making processes is already exempted from custom
tariff since 2002 through a notification number: 21/2002-Cus. In a statement,
ASSOCHAM Secretary General, Mr D S Rawat pointed out that a good number of iron
and steel projects are likely to be commissioned in India with latest steel making
technologies such as Corex, Finex and PCI (Pulversied Coal Injection) which will
import large quantities of coal.
modern iron and steel makers to over 5 percent customs duty regime for import
of coal will totally be unfair and put them at disadvantage with their counterparts
if this anomaly in existing notification is not corrected, especially when India
is gearing up to add huge capacities in iron and steel sectors to meet its growing
domestic demand added, Mr. Rawat.
the Chamber has urged CBEC to issue a clarification to this effect since import
of coal for traditional Iron and Steel plants is already exempted and there is
no fresh notification issued to this effect as yet. Coal which will be used
in modern Iron and Steel plants should be exempted from customs tariff because
it will minimize the output cost of the product. In addition, the production cost
of iron and steel would subside by minimum 20 percent and such plants will occupy
lesser space. The iron and steel made out of plants with latest technologies will
also be environment friendly and emit little greenhouse gases.
Chamber holds the view that coal is a natural resource which has a finite supply.
Historically, coal is being used by the iron and steel industry in blast furnace,
after converting the same into briquettes in coke ovens, through a process of
most of the coal have coking/caking properties in varying degrees and thus fall
under the category of coking coal, for the purpose of blast furnace, the coal
with high coking properties are preferred. The Chamber has also pointed out
that there has been conscious effort, by investing in research and development,
to maximize the effective usage of coal having soft/weak properties. This will
not only reduce costs but also will enable use of such coal which is available
in large quantities.
to these research and development activities, it has been possible to use different
varieties of coal which exhibit soft/weak coking properties during the manufacture
of iron & steel. Thus, recent technologies like Corex, Finex, PCI has greatly
enhanced the usage of such coal and also helped in reducing costs.
said progress in technology has considerably increased the optimal use of the
natural resources and thereby prevented the fast depletion of non-renewable natural
resources. These latest technologies have also helped in reducing carbon emission
and therefore offer an opportunity for the iron and steel industry to adopt these
technologies to reduce costs and offer an environmental friendly option for manufacturing
iron amd steel. (firstname.lastname@example.org)