Assocham advocates zero import tariffs on coal, more rail raking to solve energy supply problems


The Federal Association calls on states and discus not to underestimate commercial consumers when it comes to the power supply

The Federal Association calls on states and discus not to underestimate commercial consumers when it comes to the power supply

Industry association Assocham has called for duty-free imports of coal, greater availability of railroad rakes to transport the dry fuel and a different diesel tariff for company-owned generators to solve the electricity supply problem this summer.

“We urge states and Discus not to differentiate against commercial consumers when it comes to electricity supply. This is crucial as industrial production growth remains subdued despite the broader economic recovery,” Assocham Secretary-General Deepak Sood said in a statement.

Assocham has proposed key measures, including duty-free coal imports along with increased availability of railroad rakes to transport coal and a differentiated diesel rate for company-owned generator sets, to address power supply challenges in several states amid unprecedented early heatwave conditions in several parts of the country .

While the center has allowed up to 10% of imported coal to be mixed with domestic coal, global supply bottlenecks and sharp price increases on international markets are making power generation companies more difficult and penalizing further transmission chains. he added.

“Although the import duty on coal is currently 2.5%, given the urgency of the situation, we would urge the tariff to be scrapped,” he said.

The association explained that while the recently signed free trade agreement with Australia, the main source of imported coal for India, would help in the medium to long term, the issue of adequate coal supply needed to be addressed in advance.

“In the event of power outages caused by discoms, no additional burdens should be imposed on industrial consumers. Those who have their own generating capacity should be supplied with diesel at differentiated prices,” he explained.

Several states were suffering from power shortages, with the situation further affected by exceptional heatwave conditions that set in fairly early this year, he noted.

“It’s still not raining and we have to manage the situation with constant monitoring, together from the centre, states and industry.” Assocham has reached out to its members to continue sharing information on the evolving situation, which in turn with the government would be shared.

Power reforms initiated by the center to improve Diskus’ financial conditions should be accelerated, he suggested.

“It is not about increasing generation capacity, also the viability of the distribution companies must be addressed by the center and the states. However, the center has issued several measures in this direction, which must be implemented with cooperation between the states,” Assocham said.

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