The aluminium industry, a key contributor to India’s V-shaped economic revival, has demanded the removal of cess on coal in the Union Budget to be presented on Tuesday next, to reduce soaring power costs for industries.
Incidentally, NITI Aayog too has highlighted the challenges of high-power costs for Indian Aluminium producers resulting in competitive disadvantage viz-a-viz global players. The cess on coal alone amounts to 20% of the cost of mining coal. As a result, despite having a competitive advantage in coal reserves, India is one of the most expensive countries to produce coal-based electricity. The coal cess has been repeatedly doubled multiple times, moving from Rs 50/MT to Rs 400/MT.
