Question : IMPORT OF COAL



(a) the details of the coal imported by various sectors during 1998-99 and 1999-2000;

(b) whether the imported quality of coal was not available in indigenous mines;

(c) if so, the reasons therefor;

(d) whether the Government have allowed relaxation in import duty and railway transportation charges for the imports, contrary to the increase in railway transportation charges of indigenous coal; and

(e) if so, the details thereof ?

Answer given by the minister


THE MINISTER OF STATE FOR MINES & MINERALS

(SMT. RITA VERMA)

(a) In the year 1998-99, 15.64 million tonnes of coal were imported into the country out of which 9.64 million tonnes were coking coal and 6.00 million tonnes were non-coking coal. Similarly, in 1999-2000, 8.65 million tonnes (provisional) of coking coal and 6.50 million tonnes (provisional) of non-coking coal were imported.

(b)&(c) Coking coal of the required quality is not adequately available in the country, while there is sufficient reserve of non-coking coal. Coal is, therefore, imported primarily to bridge the gap between indigenous availability and the required quality. Some import of non- coking coal is also made as the present level of customs duty and railway freight make such imports cost competitive per unit of calorific value on certain locations.


(d)&(e): The basic import duty for coal has been brought down from the level of 85% in 1993-94 to 10% in 1997-1998 and it remained there till 1998-99. It was again revised to 15% in 1999-2000. It comes to 21.16%, after addition of surcharge and special additional duty.

The Ministry of Railways had earlier allowed 10% rebate on movement of imported coal from ports to upcountry destinations. However, they have withdrawn this concessional freight with effect from 1.4.2000.