Top
Begin typing your search above and press return to search.
keyboard_arrow_down
Login
exit_to_app
Two mind-sets: one here,  the other there
access_time 2021-01-20T13:57:46+05:30
What is Halal? Market strategies and controversy
access_time 2021-01-19T15:54:19+05:30
Arnabs chats cannot be ignored
access_time 2021-01-18T11:33:12+05:30
Women and girls need to be safe
access_time 2021-01-15T15:08:45+05:30
DEEP READAll arrow_drop_down
exit_to_app
Homechevron_rightBusinesschevron_rightProposed carbon tax...

Proposed carbon tax waiver on coal may pose risks to India's renewables growth: Fitch

text_fields
bookmark_border
Proposed carbon tax waiver on coal may pose risks to Indias renewables growth: Fitch
cancel

New Delhi:  Fitch Solutions on Monday said that the centre's proposed carbon tax waiver on coal may pose substantial downside risks to India's renewable sector growth.

In a bid to alleviate significant debt levels in the power industry, India has proposed to waive carbon taxes on coal (Rs 400 rupees/tonne), it said.

This comes at a time where aggressive bidding and rapid fall in tariff prices in country's renewable power auctions have squeezed profit margins for project developers and threatened the economic feasibility of the project pipeline in the renewables sector.

The proposed carbon tax waiver on coal will "weigh on renewables growth," Fitch Solutions said, adding that the carbon tax waiver was likely to make coal-fired power cheaper, increasing the use of coal.

It expects coal to continue dominating India's power sector, making up a share of slightly under 70 per cent of the total power generation mix by 2029, with non-hydro renewables at 15.6 per cent.

"We stress that the continued push for lower tariffs in the tender process have already resulted in the undersubscription and cancellation of a few auctions across FY'18 and FY'19," it said.

Most notably, Tamil Nadu, one of India's largest renewable energy states, has decided to cease wind and solar auctions for the time being due to undersubscription in the previous two.

Coal-powered projects had faced some headwinds in recent years, noted by multiple project cancellations and stiff competition from non-hydro renewable sources, as the cost of renewables in India has fallen below that of coal and gas.

Show Full Article
TAGS:
Web Title - Proposed carbon tax waiver on coal may pose risks to India's renewables growth: Fitch
Next Story