Sitharaman Proposes Doubling TCS On Coal And Lignite

05 Feb 2026 CW Team

Industry analysts said the move reflected shifting priorities in the minerals sector even as coal and iron ore remained central to industrial activity, with coal output projected to reach 1.1 billion (bn) tonne (t) in FY26. Coal India was reported to account for over 80 per cent of domestic coal production, and the state miner had designated 2026 as a year of reform with a focus on higher output, improved quality, technology and diversification. Those developments were cited as background to policy changes in energy and mining.

India's electricity demand continued to grow at a robust pace, and coal based power generation accounted for around 70 per cent of total electricity output. Rising industrial activity and peak power requirements had kept coal supply and evacuation central to energy security. Analysts suggested that adjustments to TCS rates were intended to balance revenue administration with operational realities in the supply chain.

The government framed the change as a technical and fiscal measure to streamline tax collection across commodities and to reduce compliance complexity for authorities. Market participants were expected to assess immediate cash flow implications for producers and utilities while awaiting final rules and thresholds that would determine practical impact. Officials indicated that rationalisation of rates formed part of a longer term agenda on tax administration.

Stakeholders were likely to monitor implementation details announced in the budget documents and subsequent clarifications from tax authorities. The effect on domestic supply chains and fiscal receipts was expected to emerge as administrators and businesses adjusted to the revised rate.

Finance minister Nirmala Sitharaman proposed in the federal budget to double the tax collected at source rate on the sale of coal and lignite from one per cent to two per cent, describing the change as part of a broader effort to rationalise TCS rates and address cash flow issues. The measure was presented as an attempt to reduce multiplicity of TCS rates and to rationalise rates affecting taxpayer cash flow. The proposal was also stated to apply to the sale of iron ore. Industry analysts said the move reflected shifting priorities in the minerals sector even as coal and iron ore remained central to industrial activity, with coal output projected to reach 1.1 billion (bn) tonne (t) in FY26. Coal India was reported to account for over 80 per cent of domestic coal production, and the state miner had designated 2026 as a year of reform with a focus on higher output, improved quality, technology and diversification. Those developments were cited as background to policy changes in energy and mining. India's electricity demand continued to grow at a robust pace, and coal based power generation accounted for around 70 per cent of total electricity output. Rising industrial activity and peak power requirements had kept coal supply and evacuation central to energy security. Analysts suggested that adjustments to TCS rates were intended to balance revenue administration with operational realities in the supply chain. The government framed the change as a technical and fiscal measure to streamline tax collection across commodities and to reduce compliance complexity for authorities. Market participants were expected to assess immediate cash flow implications for producers and utilities while awaiting final rules and thresholds that would determine practical impact. Officials indicated that rationalisation of rates formed part of a longer term agenda on tax administration. Stakeholders were likely to monitor implementation details announced in the budget documents and subsequent clarifications from tax authorities. The effect on domestic supply chains and fiscal receipts was expected to emerge as administrators and businesses adjusted to the revised rate.

Infrastructure Urban

02 Jun 2026

VECV Sales Rise 7.8 Per Cent In May 2026

VE Commercial Vehicles recorded sales of 7,978 units in May 2026, compared to 7,401 units in May 2025, registering growth of 7.8 per cent. This included 7,789 units from the Eicher brand and 189 units from the Volvo brand.Eicher branded trucks and buses reported sales of 7,789 units during the month, up 7.3 per cent from 7,258 units a year earlier. In the domestic commercial vehicle market, Eicher sales rose 9.1 per cent to 7,375 units from 6,758 units in May 2025.Exports declined 17.2 per cent to 414 units from 500 units in the corresponding month last year. Volvo Trucks and Volvo Buses recor..

Infrastructure Urban

02 Jun 2026

Table Space Strengthens DESYN Leadership Team

Table Space has announced strategic leadership appointments within DESYN, its integrated Design and Build business, as it looks to strengthen operations across key enterprise and GCC markets in India. DESYN was launched as a strategic extension of Table Space’s workspace solutions portfolio to meet rising demand for agile, high-quality and rapidly deployable enterprise workspaces.Shruti Ookabhoy has joined DESYN as Executive Director and will lead the Design vertical, focusing on design capability, operational excellence and team development across markets. She brings over 22 years of experi..

Infrastructure Transport

02 Jun 2026

Concord Associate Bags Rs 2.79 Bn Kavach Order

Concord Control Systems said its associate company, Progota India, has received a Rs 2.79 bn domestic order from Indian Railways for the supply, installation, testing and commissioning of on-board Kavach 4.0 loco equipment.The order is scheduled for execution within 12 months and strengthens Concord’s role in India’s railway safety and signalling ecosystem. Kavach is India’s indigenous automatic train protection system, designed to improve operational safety by helping prevent signal passing at danger and reducing collision risks.Gaurav Lath, Joint Managing Director, Concord Control Syst..