Aluminium Associations had sought removal of coal cess in Budget
COAL & MINING

Aluminium Associations had sought removal of coal cess in Budget

The Aluminium Association of India (AAI) sought to eliminate coal cess in the upcoming Budget. It further said that a steep rise in coal had affected the sustainability of the industry.

The Ministry of Finance, Nirmala Sitharaman, will present the Union Budget for 2022-23 on 1 February.

AAI told the media that it is a highly intensive industry where coal contributes to 40% of the aluminium production cost.

It added that the Indian aluminium industry requests support in the upcoming Budget 2022-23. High cess on coal about Rs 400 per million tonnes (mt) to be eliminated to support power-intensive industries and retain competitiveness of the domestic industry.

The centre has created the National Clean Energy Fund (NCEF) with contributions from clean energy cess imposed on coal mined in India or imported overseas. Earlier, the cess was Rs 50 per tonne and raised to Rs 400 per tonne in 2016.

India's aluminium production cost has increased due to increased power cost in the last few years, with the increasing prices of coal, cess and logistic costs, and many more.

The industrial power cost in India is very high besides having the fifth-largest coal reserves.

AAI said major coal-producing countries are extending their support to reduce power and production costs and rendering competitiveness to the domestic aluminium industry.

The National Institution for Transforming India (NITI) Aayog highlighted the challenges of high power costs for Indian aluminium producers resulting in a competitive disadvantage in global players.

Image Source

Also read: Aluminium industry demands reduction in custom duty on raw

The Aluminium Association of India (AAI) sought to eliminate coal cess in the upcoming Budget. It further said that a steep rise in coal had affected the sustainability of the industry. The Ministry of Finance, Nirmala Sitharaman, will present the Union Budget for 2022-23 on 1 February. AAI told the media that it is a highly intensive industry where coal contributes to 40% of the aluminium production cost. It added that the Indian aluminium industry requests support in the upcoming Budget 2022-23. High cess on coal about Rs 400 per million tonnes (mt) to be eliminated to support power-intensive industries and retain competitiveness of the domestic industry. The centre has created the National Clean Energy Fund (NCEF) with contributions from clean energy cess imposed on coal mined in India or imported overseas. Earlier, the cess was Rs 50 per tonne and raised to Rs 400 per tonne in 2016. India's aluminium production cost has increased due to increased power cost in the last few years, with the increasing prices of coal, cess and logistic costs, and many more. The industrial power cost in India is very high besides having the fifth-largest coal reserves. AAI said major coal-producing countries are extending their support to reduce power and production costs and rendering competitiveness to the domestic aluminium industry. The National Institution for Transforming India (NITI) Aayog highlighted the challenges of high power costs for Indian aluminium producers resulting in a competitive disadvantage in global players. Image Source Also read: Aluminium industry demands reduction in custom duty on raw

Next Story
Equipment

Better Concrete Handling

Efficiently handling the transportation and placement of concrete is essential to help maintain the quality of construction, meet project timelines by minimising downtimes, and reduce costs – by 5 to 15 per cent, according to Sandeep Jain, Director, Arkade Developers. CW explores what the efficient handling of concrete entails.Select WellFirst, a word on choosing the right equipment, such as a mixer with a capacity aligned to the volume required onsite, from Vaibhav Kulkarni, Concrete Expert. “An overly large mixer will increase the idle time (and cost), while one that ..

Next Story
Real Estate

Dharavi Rising!

Dharavi, Asia’s largest informal settlement, stands on the cusp of a historic transformation. With an ambitious urban renewal project finally taking shape, millions of residents are looking ahead with hope. But delivering a project of this scale brings immense challenges – from land acquisition to rehabilitate ineligible residents outside Dharavi and rehabilitation to infrastructure development. It also requires balancing commercial goals with deep-rooted social impact. At the helm is SVR Srinivas, IAS, CEO & Officer on Special Duty, Dharavi Redevelopment Project (DRP), Government..

Next Story
Infrastructure Urban

Patel Engineering Secures Two Projects Worth Rs 20.37 Billion

Patel Engineering Ltd has secured two important infrastructure projects valued at Rs 20.37 billion. The company received an order from the City and Industrial Development Corporation of Maharashtra Ltd (CIDCO) for dam construction and associated works in Maharashtra. The project will be executed over a period of 42 months. Another project, awarded by the North Eastern Electric Power Corporation Ltd (NEEPCO), involves the development of a 240 MW hydropower project in Arunachal Pradesh. The project scope includes civil construction, testing, commissioning, and installation of hydro-mechanical e..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?