Govt moves to halve duty on coal import

The government is going to halve duty and other tariffs on coal import in the face of a vacuum created due to Indian ban on coal export to Bangladesh, official sources said.
The step is being taken to encourage coal import from other sources to meet the local demand as brick manufacturing which needs a significant volume of coal every year is at its peak.
 "Yes, the step to reduce duty and other tariffs on coal import is under process. A notification in this regard will be issued within a day or two," member of the National Board of Revenue (NBR) Farid Uddin told the FE Thursday without elaborating.
The National Green Tribunal (NGT) of the Indian state of Meghalaya on May 17 had banned coal mining following a petition filed by an environmental organisation.
Bangladesh every year imports 1.6 million tonnes of coal from Meghalaya through six land customs stations in Tamabil, Shella and Bholaganj along the Meghalaya-Sylhet region and Barchhara, Bagli and Charagaon in Sunamganj.
When contacted, Commerce Secretary Hedayetullah Al Mamoon told the FE Thursday some 80 per cent demand of coal for brick kilns is being met by imports from Meghalaya.
He said the imposition of ban has created shortage of coal in Bangladesh. "The issue was about to settle last week, but may take some more days."
Mr Mamoon said steps are being taken to encourage importers to import coal from other sources to meet demand. A move for tariff reduction is underway in this connection, he added.
He said this is peak time for brick kilns for brick production. If adequate coal is not available, kiln owners may cut trees to meet their energy needs, he noted.
The Secretary said he will sit with coal importers next Sunday to discuss ways to meet immediate need of coal and request them to find alternative sources other than India.
According to a message received in Dhaka from the Bangladesh High Commission in New Delhi, the National Green Tribunal (NGT) of Meghalaya had asked the authorities concerned to export coal after weighing through weigh-bridge instead of volumetric method (as per truck load).
A weigh-bridge has been installed in the Dawky LC Station (LCS) but it is yet to be certified by the Meghalaya state to permit the transportation. Setting up of weigh-bridge in two more LCSs is in the process but it may take nearly two months.
With intervention of the Indian central government, the National Green Tribunal (NGT) is also considering to allow transpiration of coal volumetric method, it added.
The tribunal has imposed ban on 'rate-hole mining' method of coal while there is no restriction on its 'scientific mining', it further mentioned.
When contacted, energy expert and BUET professor Dr M Tamim told the FE, the government needs to encourage businessmen to use local coals instead of imported ones considering their high quality.
 "Though local coal is a bit expensive, its quality is very high. The government should introduce technology to the businessmen so that they could  use local coal," he said.
Regarding duty reduction on coal import, Mr Tamim said if coal is not imported, brick kiln owners may again start cutting trees to meet their energy needs.
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