Latest News | Aluminium Association Seeks Elimination of Coal Cess in Upcoming Union Budget
Get latest articles and stories on Latest News at LatestLY. The Aluminium Association of India (AAI) has sought the elimination of coal cess in the upcoming Union Budget and said the steep hike of the same has adversely affected the sustainability of the sector.
New Delhi, Jan 27 (PTI) The Aluminium Association of India (AAI) has sought the elimination of coal cess in the upcoming Union Budget and said the steep hike of the same has adversely affected the sustainability of the sector.
Finance minister Nirmala Sitharaman will present the Union Budget for 2022-23 on February 1.
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The AAI said it is a highly power-intensive industry where coal contributes to 40 per cent of aluminium production cost
The Association said the "Indian aluminium industry requests...support in the upcoming Union Budget 2022-23. High cess on coal (Rs 400 per MT)...be eliminated to support power-intensive industries and retain competitiveness of the domestic industry".
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The government created the National Clean Energy Fund (NCEF) with contributions from the clean energy cess imposed on coal mined in India or imported. The cess, which came into effect in 2010, was initially Rs 50 per tonne in 2010 and increased to Rs 400 in 2016.
The cost of aluminium production in India has substantially increased primarily due to the increased power cost in the past few years with increasing coal prices, cess and logistics cost, among others.
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 cut power and production costs and rendering competitiveness to the domestic aluminium industry, the AAI said.
The NITI Aayog in a report also highlighted the challenges of high power costs for Indian aluminium producers resulting in competitive disadvantage viz-a-viz global players. HRS hrs
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)