Exem pt new t echnol 12s f or st eel i dust r y f r om cust om s dut y: ASSO C AM 10/ 1/ gi o e n H

To overcome the fast-increasing coking coal prices and widening gap between demand and supply, industry body ASSOCHAM has submitted a proposal to encourage new green technologies used in steel production with a view to reduce costs and carbon emissions while improving productivity. Recent technologies like corex, finex and pulverised coal injection (PCI) in blast furnace have greatly increased their relevance at a time when India is set to become one of the global steel hubs showcasing a variety of world-class technologies leveraging technical competencies. They preclude the needs of a coke oven plant and use inferior quality coals with weak caking properties directly into furnace without going through the process of making coke, said The Associated Chambers of Commerce and Industry of India (ASSOCHAM). Blending of hard and poor grades of coking coals has become a necessity, said its secretary general D.S. Rawat. Coking coal is not available in the required quantity and steel manufacturers have to import them. In the Budget for 2011-12, coking coal is defined as coal having mean reflectance of more than 0.85 and swelling index or crucible swelling number of more than 2. But the minimum mean reflectance of corex and PCI is 0.6 and minimum swelling index of 1. So the present customs tariff does not treat new technologies at par with coals used for conventional blast furnace route. Corex, finex and PCI technologies should be considered at par with coking coals for the purpose of exemption from paying customs duty, said Mr. Rawat in letters to ministers and senior officials at coal, steel and finance ministries. Coking coal was exempted from paying customs duty in March 2002. He said these technologies substitute the scare prime coking coal which is used by the iron and steel industry in blast furnace after converting it into briquettes in coke ovens through caking. Almost all steel makers including Steel Authority of India and Rashtriya Ispat Nigam use PCI. Imposing customs duty on such technologies will tantamount to penalising environmentfriendly option available to the steel industry, said Mr. Rawat.

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