Central government proposes to waive clean energy cess on coal

The central government has proposed to waive the GST compensation cess, earlier called the clean energy cess, on coal. Currently, a clean energy cess of Rs 400 per tonne is levied on the production and import of coal. The proposed move will help reduce the cost of generation for gencos and subsequently reduce the power procurement cost for discoms. Further, the move will help offset the expected increase in the power price, following the installation of emission control equipment in TPPs.