Coal news and updates

APGENCO seeks tariff hike to absorb Green cess

In order to absorb the impact of the increase in clean energy cess on coal, Andhra Pradesh Power Generation Corporation (APGENCO) plans to seek a hike in its power tariff from the state government, a senior company official told ICMW.

“With doubling of the clean energy cess, there will be significant impact on our variable cost (of generation) which would be hard to absorb. So, eventually we will have to seek a nod from the Andhra Pradesh Power Co-ordination Committee, the state power regulator, to hike our power tariff,” the official said.

Incidentally, the Union Budget has proposed a steep hike in clean energy cess on coal to Rs 400 per ton mined, from Rs 200. It is for the third time in a row that the clean energy cess has been increased as part of the Budget announcements.

Earlier, in 2015-16, the finance minister had doubled the clean energy cess from Rs 100 to Rs 200 per ton.

India, which is the world’s third largest emitter of greenhouse gases, is one of a few countries that have introduced a carbon tax.

SOurce: ICMW