Sunday, April 8, 2012

Indonesia has proposed a 25 per cent tax on coal exports.

Stocks such as NTPC, Adani Power, India Cements, Lanco Infratech, Reliance Power and Tata Power may come under pressure this week following new tax proposal in Indonesia. 


According to reports, Indonesia has proposed a 25 per cent tax on coal exports to prevent over-exploitation of its mines and has plans to double the levy to 50 per cent in 2013. Already power companies are facing coal shortage for their projects. 


Reuters report quoting Mr K. Rajagopal, CEO of Lanco Infratech Ltd, said: “It's a setback for power producers. This will discourage them from taking up projects based on imported coal.”


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