Prime Minister Narendra Modi’s office has proposed waiving tax on coal to help finance pollution-curbing equipment, according to documents, but the move would also make coal more competitive in price with solar and wind energy.
Modi’s office has proposed waiving the carbon tax of Rs 400 per tonne that was levied on the production and import of coal.
The documents say the savings would improve the financial health of utilities and distribution companies, and help the power producers to install pollution-curbing equipment.
The Prime Minister’s office and the power ministry did not respond to requests seeking comment on the proposals.
Despite struggling with some of the world’s worst air pollution levels, India has already pushed back a deadline to cut emission levels to up to 2022. Over half of the country’s coal-fired plants are set to miss a phased deadline starting December 2019 to cut emissions of sulphur oxides, which cause lung disease.
The proposal is a big win for the coal industry, which has lobbied for government help, citing high debt levels and burgeoning payment dues from government-owned power distribution companies.
