Eliminate Coal Cess to Support Power Industries Like Aluminium
ECONOMY & POLICY

Eliminate Coal Cess to Support Power Industries Like Aluminium

Industry body Assocham has pitched for the removal of coal cess stating that the move will support power-intensive industries like aluminium and maintain competitiveness of the domestic industry. In its pre-budget memorandum 2025-26, the industry body said that "high cess on coal (Rs 400 per MT)...be eliminated to support power-intensive industries." 

Finance Minister Nirmala Sitharaman is likely to present the Union Budget 2025 on February 1, 2025. 

The cess was introduced as Clean Energy Cess in 2010 with a levy of Rs 50 per metric tonne on coal. It has been increased over the years from Rs 50 per metric tonne to Rs 100 per metric tonne in 2014-15, Rs 200 per metric tonne in 2015-16, and Rs 400 per metric tonne in the Union Budget 2016-17, it said. 

The hike in coal cess has increased the production cost of aluminium many times, Assocham said. 

It further said that the steep hike in coal cess has adversely impacted the sustainability of the aluminium industry being a highly power-intensive industry, where coal contributes to 32 per cent of the production cost of the silvery-white metal. 

In India, the industrial power cost is very high despite having the fifth largest coal reserves. Globally, major aluminium-producing countries are extending support to bring down the power and production costs. 

A NITI Aayog report on 'Need for Aluminium Policy in India' also highlighted the challenges of high power costs for the domestic aluminium producers resulting in competitive disadvantage viz-a-viz global players. 

Industry body Assocham has pitched for the removal of coal cess stating that the move will support power-intensive industries like aluminium and maintain competitiveness of the domestic industry. In its pre-budget memorandum 2025-26, the industry body said that high cess on coal (Rs 400 per MT)...be eliminated to support power-intensive industries. Finance Minister Nirmala Sitharaman is likely to present the Union Budget 2025 on February 1, 2025. The cess was introduced as Clean Energy Cess in 2010 with a levy of Rs 50 per metric tonne on coal. It has been increased over the years from Rs 50 per metric tonne to Rs 100 per metric tonne in 2014-15, Rs 200 per metric tonne in 2015-16, and Rs 400 per metric tonne in the Union Budget 2016-17, it said. The hike in coal cess has increased the production cost of aluminium many times, Assocham said. It further said that the steep hike in coal cess has adversely impacted the sustainability of the aluminium industry being a highly power-intensive industry, where coal contributes to 32 per cent of the production cost of the silvery-white metal. In India, the industrial power cost is very high despite having the fifth largest coal reserves. Globally, major aluminium-producing countries are extending support to bring down the power and production costs. A NITI Aayog report on 'Need for Aluminium Policy in India' also highlighted the challenges of high power costs for the domestic aluminium producers resulting in competitive disadvantage viz-a-viz global players. 

Next Story
Infrastructure Urban

CRCL, IIT Delhi Sign MoU to Boost Science and Ease of Business

The Central Revenues Control Laboratory (CRCL), Central Board of Indirect Taxes and Customs (CBIC), Department of Revenue, Ministry of Finance, and the Indian Institute of Technology (IIT) Delhi signed a Memorandum of Understanding (MoU) toward trade facilitation and improving the ease of doing business. This MoU collaboration aims to foster R&D, innovation, and scientific excellence at CRCL, bolstering trade facilitation and regulatory efficiency.The MoU was signed by Prof. Rangan Banerjee, Director, IIT Delhi, and Shri V. Suresh, Director, CRCL, in presence of Shri Surjit Bhujabal, Speci..

Next Story
Infrastructure Urban

CAQM Sub-Committee Activates 27-Point Plan to Improve NCR Air Quality

The daily average AQI of Delhi has been hovering marginally above 200 threshold with forecast of slight improvement since last two days. Today, Delhi’s daily average Air Quality Index (AQI) clocked 213 (‘Poor’ category), as per the daily AQI Bulletin provided by the Central Pollution Control Board (CPCB), owing to variable winds. In wake of the average/ overall air quality of Delhi recording ‘Poor’ air quality category ranging between 201-300, the CAQM Sub-Committee on GRAP met today to take stock of the current air quality scenario of Delhi-NCR. While comprehensively reviewing the a..

Next Story
Infrastructure Urban

DoT Launches Financial Fraud Risk Indicator to Boost Cybersecurity

In a major step towards combating cyber fraud and financial crime, the Department of Telecommunications (DoT) has announced sharing of “Financial Fraud Risk Indicator (FRI)” with stakeholders- an output from a multi- dimensional analytical tool developed as part of the Digital Intelligence Platform (DIP) to empower financial institutions with advance actionable intelligence for cyber fraud prevention. This will enhance cyber protection and validation checks in case of mobile numbers flagged with this tool when digital payment is proposed to be made to such numbers.What is the “Financial ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?