Panel pulls up govt. for diverting coal cess

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Panel pulls up govt. for diverting coal cess:UPSC

The 42nd standing committee on energy in its report on stressed gas-based power plants tabled in Parliament earlier this month has pulled up the government for diverting coal cess to compensate States for revenue loss post-GST, and recommended financial support to the stressed gas-based power projects in the country from National Clean Energy Fund (NCEF).

Key Facts:

  • Coal cess is imposed at Rs. 400 per tonne of coal extracted. However, there has been diversion of coal cess to compensate the states for shortfall in GST revenue.
  •  Gas based power plants are operating below their installed capacity due to shortage of funds.
  • The coal cess collected goes to the National Clean Energy Fund. This fund goes to the Public Accounts of India.

Source:The Hindu

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