In order to boost the steel sector, the steel ministry has sought waiver of the import duty on coking coal. Ahead of the Union Budget 2018- 19, Steel Secretary Aruna Sharma has said that the ministry in its recommendations to the finance ministry has suggested bringing down the import duty on coking coal to zero percent from 2.5 percent.
Sharma has said the ministry also suggested bringing down the import duty on steel scrap to nil. India has to heavily depend on import of coking coal, as the domestic quality has higher ash content, which is unsuitable for the steel industry with present technology. To bring down the imports of coking coal, the steel ministry had earlier said that it was in discussion with the coal ministry for investment in washeries.
According to the Coal Minister Piyush Goyal, during April-September of the ongoing fiscal, 22.6 million tonne (MT) (provisional) of coking coal was imported. He added that while 41.6 MT coking coal was imported in 2015-16, the import was 43.5 MT.