Forbes India's Short Blogs on Union Budget 2013 announcements
Power consumers might big losers from Budget’ 2013 as cost of power is expected to increase. Finance Minister P Chidambaram has made imports of steam coal dearer. Steam coal, or the coal used to fire thermal plants, was exempt from customs duty but had a concessional CVD (countervailing duty) of 1 per cent. Chidambaram has now introduced custom duty of two per cent on imported steam coal. That he has also increase the CVD to 2 per cent might be not much of a comfort as now the net benefit has been taken off.
Custom duty and CVD on bituminous coal, which is used in power and steel sectors, has also been altered. Till now this coal type attracted a duty of 5% and CVD of 6%. Now both the custom duty and CVD has been brought to two percent, making this coal also dearer.