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India's coal tax exemption benefits aluminum and steel industry

The Indian government announced that it would exempt the clean energy tax on coal, which would effectively reduce the production cost of steel and aluminum enterprises, which burn coal in production. The proposal, from the office of prime minister Narendra Modi, aims to improve the financial situation of power companies and distribution companies and help them install pollution reduction equipment. At present, India imposes a carbon tax of RS 400 (US $5.61) per ton on coal production and import.

This policy is expected to reduce the production cost of steel and aluminum by rs. 400-500 and RS. 4000-5000 per ton respectively. Aluminium producers will gain more than steel producers. Compared with the power coal, the iron and steel enterprises prefer to use imported coking coal.