Govt. panel backs higher carbon tax on coal imports.

Syllabus: GS-III, Subject: Economy  Topic: Taxation, Issue: Coal Imports

Context: Calls for a bigger carbon tax on higher quality imported coal while cutting rates for domestic coal.

  • To promote domestic coal production and usage.
  • India is the second largest importer of coal .

Characteristics of Indian coal:

  • High Ash Content: Ranging from 35% to 45%, compared to the global average of around 15%.
    • Hence, reduced overall heat generation efficiency.
  • Low Sulphur Content: This is a positive aspect. Sulphur emissions contribute to air pollution. Low sulphur means low pollution.
  • Low Ash Fusion Temperature: Temperature at which coal ash melts and becomes sticky.
    • Challenge for power plants causing operational issues.
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