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NTPC seeks excise waiver on fly ash bricks
NTPC Ltd has sought an exemption for a few more years on goods produced with 25 per cent fly ash content, writes M Rajendran.
NTPC Ltd has sought an exemption for a few more years on goods produced with 25 per cent fly ash content.
Fly ash bricks (non-clay bricks) and other ash-based products, which at present use about 50 per cent fly ash and has capacity to use up to 80 per cent, are subject to 8 per cent excise duty.
In a letter to power secretary RV Shahi, NTPC chairman and managing director T Sankaralingam has pointed out, “There are already a number of roadblocks in the use of fly ash-based building products in construction, use of which has been made mandatory, but are not being used due to a number of reasons.”
The power secretary has been urged to take up the issue for excise duty exemption at the earliest with the Central Board of Excise and Customs (CBEC).
When contacted, Shahi said, “Excise duty exemption for fly ash bricks is one of the important issues that would be taken up with the finance ministry soon.”
NTPC has highlighted that the high cost of manufacturing, availability of conventional building products made up of natural resources at cheaper rates, lack of awareness among the public and construction agencies and the need for a change in user habits are major deterrents in the use of ash-based products in construction.
“The eight per cent excise duty has also become applicable on fly ash bricks being manufactured at pilot plants set up at our coal-based stations for in-house use and will discourage promotion of ash bricks in heavy construction,” says NTPC's letter to the power secretary.
NTPC has also stressed that the 8 per cent excise duty on fly ash bricks will further increase its cost compared to clay bricks/sand lime bricks, which still enjoy duty exemption. This would result in the collapse of fly ash brick/block industry and will severally effect ash utilisation at thermal power plants, it said.
