Please read the following and guess whose statement itis’’ Railway Budget proposals increasing freight rates of all commodities for all distances by 4 percent and raising of the classification of washed coalby one step viz 135 A to 140 in train load and 135 B to 145 in wagon load would make the freight rate of domestic coal even higher .Railway had recently given a concession of 10 percent in freight rates of imported coal .These measures will widen the disparity between the freight rates of imported and domestic coal even further to the disadvantage of the latter.’’ Statement of left parties, trade unions . The views looks like their but actually this is an officials press release put by the the PIB in the website on Monday.And it is natuaral that it has been okayed by the highups in coal Ministry. And it is virtaully open war between the coal and railway minstry.The press release further says ,’The abolition of 5 percent special custom duty rationalisation of 7 major ad-valorem rates of custom duty to 5 basic rates,introduction of a new rate of 15 percent (substituting the existing 10 percent ),a uniform surcharge of 10 per cent of on all imports would make the duty on import of non-coking coal higher by 1.56 per cent and that onco coking coal lower by 2.60 per cent over the existing duty level. During 1997-98

As a results of rationalization if import duty structure on project imports, the nominal basic custom duty on the coals mining project imports is reduced to 5 percent form the existing 25 percent but is now subject to applicable rates of countervailing duty. These rates are 16 percent . Therefore, the effective rate of duty of duty on project imports would now be 22.38 percent as against 22 per cent earlier. The coal sector has not been benefited from reduction of duty on project imports.

Surcharge/corporate tax and additional duty on HSD would have adverse impact on Coal India Limited as the pre-tax profit will be affected by Rs.50 crores and post tax profit tax profit by 131.50 crores.