India Scraps LNG Import Tax

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.

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LNG World News Staff, March 19, 2012; Image: Petronet LNG