Question : IMPORT OF COAL



(a) quantum of power grade coal imported alongwith its cost per tonne and customs duties thereon during each of the last three years, country-wise;

(b) the equivalent indigenous coal to the imported coal;

(c) whether the Government have received any representations from either Coal India Ltd. or any of the coal companies not to import power grade coal; and

(d) if so, the effective steps taken in this regard?

Answer given by the minister

THE MINISTER OF STATE FOR COAL (SHRI N.T. SHANMUGAM)

(a)&(b): Non-coking coal of varying heat values in varying quantities are imported in to the country by consumers, traders and importers under the current import policy. Import of coal is not monitored by the Ministry of Coal. Therefore, details regarding cost per tonne of imported coal are not available. However, details of import of non coking coal generally used by power plants, cement plants etc. during the year 1997-98 to 1999-2000 are given below:

Year Basic Customs Quantity imported (Million tonnes)
1997-98 10% 6.56 1998-99 10% 6.00 1999-2000 15% 7.50 (Provisional)
(c)&(d) Coal India Limited have made representations for providing a level playing field for indigenous coal to meet the challenges posed by imported coal. Indigenous coal per therm is costlier than imported coal at certain coastal areas due to certain reasons including high railway freight over long distances and low import duty on coal .

Government has recently increased the basic import duty for non coking coal from 15% to 25%. Ministry of Coal has also written to Ministry of Railways for redressing the imbalance in the rail freight structure which is heavily loaded against the commercial viability of domestic coal.