Custom duty on mine prospecting machinery cut to 2.5%
Markets will look to consolidate in the week ahead after most event risks like monetary policy and budget now over.
The government today proposed reducing basic customs duty on machinery and instruments for surveying and prospecting of mines to 2.5 per cent.
"I propose reducing basic customs duty on machinery and instruments for surveying and prospecting from 10 per cent or 7.5 per cent to 2.5 per cent," Finance Minister Pranab Mukherjee said in his Budget 2012-13 proposals today.
Better surveying and prospecting for minerals are essential for improving the productivity and efficiency of the mining sector, he added.
"In addition, full exemption from basic customs duty is being provided to coal mining projects," he added.
Mines Minister Dinsha Patel had recently said that fast-paced quality exploration was needed to meet the urgent requirement of raw materials for various industries.
The Mines Ministry has chalked out a strategic plan for identifying six priority areas that include expanding resource and reserve base by stepping up exploration.
The government had opened up the mining sector for foreign direct investment for all non-atomic and non-fuel minerals through the automatic route.