Modi govt’s coal reforms continue: Now, may make coal cheaper to buy, if FinMin agrees
After allowing commercial mining of coal by private companies to boost domestic production, the Narendra Modi-led government is now focusing on making the coal businesses more economical by making it cheaper to produce and use coal. PMO has asked the Ministry of Finance to consider waiving off carbon tax by $6 per tonne, Reuters reported citing an unidentified government official. Earlier, a PMO note had said that waiving off carbon tax, which amounts to Rs 400 per tonne of coal, would leave more cash in the hands of coal producers to spend more on procuring equipment that can control pollution caused by coal.
More than 60 per cent of the power generated in India is still obtained from non-renewable sources, out of which coal has the maximum share. Considering this large scale utilisation, it becomes important to seriously watch the environment sustainability while increasing production.
However, apart from the recently introduced goal of curbing coal imports by ramping up domestic production, the government also has a flagship target of increasing renewable energy capacity to 175 GW by 2022, which may take a hit by the new perk of waiving off the carbon tax.
