CIL out­put hike saved In­dia ₹25,900 cr forex in 3 years

Millennium Post - - BUSINESS -

KOLKATA: Con­sumers of Coal In­dia is ex­pected to ben­e­fit by Rs 6,000 crore in an­nual sav­ings un­der the Goods and Ser­vice Tax (GST) while higher pro­duc­tion by the com­pany in the last three years helped the coun­try save Rs 25,900 crore in for­eign ex­change ow­ing to lower im­ports.

“Coal pro­duc­tion has in­creased sub­stan­tially in the last three years re­sult­ing in a sav­ing of Rs 25,900 crore in im­ports for the coun­try,” Coal In­dia's chair­man Gopal Singh said at the com­pany's an­nual gen­eral meet­ing here.

Singh said coal im­ports ac­counted for 25 per cent of the coun­try's to­tal con­sump­tion in 2015-16, and 23 per cent in 2016-17.

Coal In­dia di­rec­tor (fi­nance) C K Dey told share­hold­ers that the GST im­pact on the com­pany, We have es­ti­mated that on an av­er­age, the re­duc­tion in rate on lo­cal sales is about five per cent and on the in­ter-state sales the rate of re­duc­tion in taxes is about three per cent. This (the re­duc­tion of tax rates) will give an ad­van­tage to the cus­tomers to the tune of Rs 6,000 crore (an­nu­ally).

He said the miner is fac­ing an in­verted tax struc­ture un­der the GST regime as its out­put is taxed at a lower rate while in­puts are taxed on higher rates.

Coal has been made tax­able at five per cent in the GST regime while taxes are rag­ing be­tween 18-28 per cent on our in­puts. Our out­put is taxed at five per cent while out in­puts are taxed at higher rates. This is a kind of an in­verted tax struc­ture and go­ing for­ward, this will lead to re­fund sit­u­a­tion, he said.

Singh em­pha­sised on swift ex­ploita­tion of do­mes­tic fos­sil fuel re­serves in or­der to meet fu­ture de­mand and re­duce im­ports.

“The large planned new coal-based ther­mal ca­pac­ity is likely to put pres­sure on coal re­sources. Coal-based power gen­er­a­tion ca­pac­ity of 125 gi­gawatt in 2012 and is likely to go up to more than 330441 GW by 2040 (192 GW in FY2017). The de­mand for these plants is likely to be first met by do­mes­tic coal, which will re­quire quick ex­ploita­tion of our re­serves.

“Im­port de­pen­dence in oil and gas is un­der­stand­able given our poor re­serves, but im­port de­pen­dence on coal par­tic­u­larly non-cok­ing coal, is some­thing that can be ad­dressed by swift ex­ploita­tion of do­mes­tic coal re­serves,” he said.

Singh said the share of coal in In­dia's com­mer­cial pri­mary energy sup­ply was 55 per cent in 2015-16, and is ex­pected to re­main high at 48-54 per cent, even in 2040.

He added that the sta­te­owned miner needs to achieve dou­ble-digit growth rate in or­der to meet the pro­duc­tion tar­gets.

CIL has main­tained its pro­jec­tion of one bil­lion tonne coal pro­duc­tion tar­get by 2020.

The com­pany pro­duced 554.14 mil­lion tonnes of coal in 2016-17, while coal off-take was 543.32 mil­lion tonnes dur­ing the same pe­riod. MUM­BAI: Keven­ter Agro Ltd (KAL) on Thurs­day said it has raised $25 mil­lion from Man­dala Cap­i­tal, a pri­vate eq­uity firm, to fuel growth of its dairy and agro food pro­cess­ing busi­nesses.

The move marks a sig­nif­i­cant de­vel­op­ment in the agro food pro­cess­ing sec­tor and boost­ing for­eign di­rect in­vest­ment (FDI) in­ter­est into West Ben­gal, a key mar­ket for KAL.

"We have se­cured a cap­i­tal of $25 mil­lion (about Rs 170 crore) from Man­dala Cap­i­tal. The cap­i­tal raised will be utilised for fu­ture ex­pan­sion plans," a com­pany state­ment said here.

Keven­ter Agro is cur­rently on an ag­gres­sive growth, path eye­ing sig­nif­i­cant surge in its busi­ness scale. The com­pany has re­vamped its busi­ness strat­egy and to this ef­fect, the gov­ern­ing board of the com­pany has re­ar­ranged the key func­tions of its top man­age­ment.

"We have charted out a ro­bust growth plan for each of our busi­nesses, namely dairy, ba­nana or frozen foods. With this fresh in­fu­sion of cap­i­tal, we in­tend to in­vest about $100 mil­lion into our dairy busi­ness in West Ben­gal within the next five years and grow our food pro­cess­ing busi­ness ex­po­nen­tially - all to­wards our en­deav­our of turn­ing into a $500 mil­lion com­pany by 2022," Keven­ter Agro Chair­man and Man­ag­ing Di­rec­tor Mayank Jalan said. With an ob­jec­tive to be­come one of the lead­ing dairy com­pa­nies in East­ern In­dia, KAL Group-owned Metro Dairy will see a four-fold in­crease in pro­duc­tion from the cur­rent 2.5 lakh litres a day to 1 mil­lion litres a day, he said.

Es­tab­lished in 1986, the com­pany ac­quired the Kolkata fran­chise of Edward Keven­ter's op­er­a­tions and now aims to take the 127 years le­gacy in food & dairy to new heights. The Rs 800 crore Keven­ter Agro is the flag­ship en­ter­prise of Rs 1,800 crore Keven­ter Group which has di­verse in­ter­ests in food and bev­er­age, hos­pi­tal­ity, realty, in­fra­struc­ture and ex­ports.

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