Due to higher tariffs and logistics costs, the cost of coal for end users went up significantly. On landed basis, taxes, duties and levies have accounted for up to 25% and freight up to 34% of overall coal cost, making CIL non-competitive, necessitating the urgency of reforms.
India has a stated objective of achieving 40% of installed capacity from renewables by 2030.
According to the International Monetary Fund, India’s growth premium over the emerging economies (EMs) will hit a seven-year low in 2019-20 (FY20) and an 18-year low against the developed economy, including the US.
India’s gross domestic product (GDP) at constant prices is expected to grow by 5% in FY20, against 3.9% growth in EMs in the calendar year (CY) 2019. India’s growth premium over EMs in FY20 is expected to be the lowest since 2012-13, when it had shrunk to 0.1%.
The Centre has allowed direct port delivery (DPD) clients and authorised economic operators (AEO) to pay terminal handling charges (THC) directly to the port terminals in a move that drastically alters the way the levy is collected.
The move is expected to end years of tussle between shipping lines and importers/exporters over the issue.
According to the government data, India’s thermal coal imports fell for three straight months for the first time in over two years, as an economic slowdown stifled demand from industries such as cement and sponge iron.