Poor response: Coal cess on backburner

The move to introduce such a cess was decided at the ECC meeting held in August this year in order to raise resources to augment infrastructure for the energy sector. Both power and coal ministries were asked to work out the modalities.

But in order to implement import plans of coal, there is a plan to introduce a penalty on those companies that fail to meet their import targets. Under the penalties being considered, the plan is to effect an equivalent reduction in their short-term linkages.

It was also decided to expedite the move to amend the Coal Mines Nationalisation Act to allow coal blocks for captive mining to be auctioned through competitive bidding. A draft Cabinet note is now being finalised after taking into account appropriate weightages for those having a plant in the state where the coal block in located.