India to double coal tax under 2016-17 budget

NEWS: Clean energy, nuclear and irrigation systems to benefit under budget announced by finance chief Arun Jaitley

Clean energy, nuclear and irrigation systems to benefit under budget announced by finance chief Arun Jaitley

(Pic: Pixabay)
(Pic: Pixabay)

By Ed King

India is to double a tax on a tonne of coal from 200 to 400 Rupees (around US $6) under new plans to boost investment for clean energy and the environment.

The move will likely raise power costs across the country, which relies on coal for over 70% of electricity production and has plans underway to boost coal capacity 50%.

Finance minister Arun Jaitley made the announcement in his 2016-17 budget speech on Monday, where he also revealed over $430 million of funding for a new nuclear power programme.

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Funding for the agriculture sector and irrigation projects rose 84% on last year, as the government seeks to ensure India’s farmers are more resilient in the face of changing weather patterns.

The country suffered back-to-back droughts in 2014 and 2015, hitting crop output and leaving reservoirs at record low levels. 2015 rains in Maharashtra were 40% below normal.