(ET)
Prime Minister Narendra Modi’s office has proposed waiving a 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 400 rupees ($5.61) per tonne that was levied on the production and import of coal, according to the documents reviewed by Reuters.
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 and when a decision was likely to be made.
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 India’s coal-fired plants are already set to miss a phased deadline starting Dec. 2019 to cut emissions of sulphur oxides, which have been proven to contribute to lung disease.
