The Economic Times reported on Thursday that India will impose a 2.5 percent duty on imports of coking coal, which could lift domestic steel production costs. However, the government also imposed a duty on flat-rolled stainless steel products in an attempt to give an impetus to the stainless steel industry. Coking coal is currently priced at US$120 per tonne, according to the Times.
As quoted in the press release:
Steel Authority of India (SAIL) Chairman C S Verma said the steel industry, particularly the integrated steel sector, would be impacted by customs duty increase on coking coal to 2.5 per cent.
Essar Steel Executive Vice Chairman, Firdose Vandrevala, said:
…the budget will have an adverse impact on the cost of production, with increased custom duties on imported metallurgical coal. Rather surprising and disappointing, given the shortage of metallurgical coal, in our country.