India’s $555 Million Coal Tax May Fund Electricity Lines

Pramod-DeoThis year India will get 25 billion rupees ($555 million) along with a coal tax. It is expected that India would finance new electricity-transmission lines with the intention to distribute power from clean energy projects.

Pramod Deo, chairman of the Central Electricity Regulatory Commission has said that the Finance Ministry is planning to give the funds to states which lack the infrastructure to move the power from planned renewable-energy plants.

This funding would provide potential to those states for extending their transmission networks to solar plants, wind farms and other clean-energy projects which are underway as stated by Deo via telephone interview on Feb 18 from New Delhi.

India has raised this money by charging companies for fossil fuel pollution along with a tax on coal, lignite. This rule was implemented on the 1st July. 25 billion rupees is the expected amount which is to be raised in the opening year for clean energy projects as said by Jairam Ramesh, Environment Minister.

However, when this was asked to Sumit Dutt Majumder who is the chairman of the Central Board of Excise and Customs about this, he refused to say the amount that has been raised.