Proposed carbon tax waiver on coal may pose risks to India’s renewables growth: Fitch
NEW DELHI: Fitch Solutions on Monday said that the centre’s proposed carbon tax waiver on coal may pose substantial downside risks to India’s renewable sector growth.
In a bid to alleviate significant debt levels in the power industry, India has proposed to waive carbon taxes on coal (Rs 400 rupees/tonne), it said.
This comes at a time where aggressive bidding and rapid fall in tariff prices in country’s renewable power auctions have squeezed profit margins for project developers and threatened the economic feasibility of the project pipeline in the renewables sector.
