India to double tax on coal to drive clean energy targets
Finance minister, Arun Jaitley, announces plans to finance a raft of renewable energy projects in the country by doubling the tax on coal
India has announced plans to finance a raft of renewable energy projects in the country by doubling the tax on coal.
The plans were announced this week by new finance minister, Arun Jaitley, and will include initiatives to clean India’s heavily polluted rivers.
India is focussing on some of the most ambitious clean energy projects in the world including the development of four ‘super’ solar power plants.
The projects will need heavy state funding and support which will partly be provided by the National Clean Energy Fund.
India has also committed funds to the new international sustainability bank, set up by the BRICS group, made up of Brazil, Russia, India, China and South Africa. The New Development Bank (NDB) will support sustainable energy and infrastructure improvements throughout the developing world.
The Indian government is also set to install 100,000 solar powered irrigation sets and water pumping stations across the country at a cost of US$67 million (£39 million).
There are also plans to commit a further US$17 million (£9 million) to a project that will see solar panels line the banks next waterway canals.
India remains a big importer and exporter of coal and the governments plan to double the tax on the industry will result in significant funds to drive the clean energy projects.
According to estimates an extra US$1.2 billion (£650 million) could be raised in the first 12 months.
Indian President Narendra Modi has also pledged to supply the 400 million Indian households currently living without electricity with solar power by 2019.