Coal India expects price of the dry fuel to decline in West Bengal as a cess of 20 per cent charged by the state will be subsumed in the proposed Goods and Services Tax (GST)
"We have engaged a consultant for GST impact. Upfront coal will become cheaper as the cess will be subsumed," Coal India Chairman Suthirtha Bhattacharya told shareholders.
West Bengal charges 20 per cent cess on coal beside a meagre royalty against other states charging 12 per cent royalty.
The Centre has formed a committee with representation from Coal India and the state government to study and resolve the issues of cess and royalty.
Meanwhile, replying to the CIL's overseas plan, Bhattacharya said the company did not find Mozambique suitable for mining and surrendered the lease and asked the government for an alternate location.
He said it will sign an MoU with an African company for high calorific coal and was targeting acquisition of coking coal assets in Australia. It was also exploring assets in Indonesia.
The CIL board has accorded approval to the proposal for execution of MoU between CIL (Coal India) and African Exploration Mining & Finance Corporation, SOC Ltd (AEMFC), an entity owned by the government of South Africa for identification, acquisition, exploration, development and operation of coal assets in South Africa, officials said.
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