India plans to scrap for two years the import tax on LNG to improve energy supplies to the power generation sector, Finance Minister Pranab Mukherjee said .
“ Domestic producers of thermal power have been under stress because of high prices of coal .”
“ I propose to ease the situation by providing full exemption from basic customs duty and a concessional CVD of 1 per cent to Steam coal for a period of two years till March 31, 2014 ,” he said while presenting the federal budget in parliament.
“ Full exemption from basic duty is also being provided to the following fuels for power generation:
•Natural Gas and Liquified Natural Gas; and
•Uranium concentrate, Sintered Uranium Dioxide in natural and pellet form .”
India has currently two LNG terminals in operation, Petronet’s Dahej terminal and Shell’s Hazira LNG terminal.
[mappress] LNG World News Staff, March 19, 2012; Image: Petronet LNG