Mining and Minerals

• Called for additional investment in the mines and minerals sector andemphasised the adoption of sustainable mining practices to meet industrydemand, pledging to safeguard environmental concerns

• Acknowledged the need for speedy resolution mechanisms for pendingissues in iron ore mining with amendments if necessary to the MMDR Act,1957

• Increase in royalty of minerals proposed in order to ensure greaterrevenue to state governments, however, no specific announcements yet

• Increased export duty on bauxite from 10 per cent to 20 per cent toensure domestic needs are met

Union Budget 2014-2015 provides a positive direction towards therevival of the mining industry

Mining and Minerals

• Announced comprehensive measures to enhance domestic coalproduction, with measures for quality control and environmentalprotection, including supply of crushed coal and setting up of washeries

• Proposed rationalisation of the duty structure on all non-agglomeratedcoal at 2.5 percent basic customs duty and 2 percent CVD. Anthracite coal,bituminous coal, coking coal, steam coal and other coal to all attract thesame duty to eliminate assessment disputes

• Increased basic customs duty on metallurgical coke from Nil to 2.5percent in line with the duty on coking coal

• Rationalisation of coal linkages to optimise transport of coal

Union Budget 2014-2015 provides a positive direction towards therevival of the mining industry

Mining and Minerals

• Increased import duty on flat-rolled products of stainless steel from 5percent to 7.5 per cent, to provide impetus to domestic producers ofstainless steel

• Proposed rationalisation of the duty on ship breaking scrap and meltingscrap of iron or steel by reducing the basic customs duty on shipsimported for breaking up from 5 percent to 2.5 percent

Union Budget 2014-2015 provides a positive direction towards therevival of the mining industry