<p>New Delhi: Industry body Assocham has pitched for the removal of coal cess stating that the move will support power-intensive industries like aluminium and maintain competitiveness of the domestic industry.</p>.<p>In its pre-budget memorandum 2025-26, the industry body said that "high cess on coal (Rs 400 per MT)...be eliminated to support power-intensive industries." </p>.<p>Finance Minister Nirmala Sitharaman is likely to present the Union Budget 2025 on February 1, 2025.</p>.<p>The cess was introduced as Clean Energy Cess in 2010 with a levy of Rs 50 per metric tonne on coal.</p>.India's automobile industry will be number one in world in next 5 years: Gadkari.<p>It has been increased over the years from Rs 50 per metric tonne to Rs 100 per metric tonne in 2014-15, Rs 200 per metric tonne in 2015-16, and Rs 400 per metric tonne in the Union Budget 2016-17, it said.</p>.<p>The hike in coal cess has increased the production cost of aluminium many times, Assocham said.</p>.<p>It further said that the steep hike in coal cess has adversely impacted the sustainability of the aluminium industry being a highly power-intensive industry, where coal contributes to 32 per cent of the production cost of the silvery-white metal.</p>.<p>In India, the industrial power cost is very high despite having the fifth largest coal reserves.</p>.<p>Globally, major aluminium-producing countries are extending support to bring down the power and production costs.</p>.<p>A NITI Aayog report on 'Need for Aluminium Policy in India' also highlighted the challenges of high power costs for the domestic aluminium producers resulting in competitive disadvantage viz-a-viz global players.</p>
<p>New Delhi: Industry body Assocham has pitched for the removal of coal cess stating that the move will support power-intensive industries like aluminium and maintain competitiveness of the domestic industry.</p>.<p>In its pre-budget memorandum 2025-26, the industry body said that "high cess on coal (Rs 400 per MT)...be eliminated to support power-intensive industries." </p>.<p>Finance Minister Nirmala Sitharaman is likely to present the Union Budget 2025 on February 1, 2025.</p>.<p>The cess was introduced as Clean Energy Cess in 2010 with a levy of Rs 50 per metric tonne on coal.</p>.India's automobile industry will be number one in world in next 5 years: Gadkari.<p>It has been increased over the years from Rs 50 per metric tonne to Rs 100 per metric tonne in 2014-15, Rs 200 per metric tonne in 2015-16, and Rs 400 per metric tonne in the Union Budget 2016-17, it said.</p>.<p>The hike in coal cess has increased the production cost of aluminium many times, Assocham said.</p>.<p>It further said that the steep hike in coal cess has adversely impacted the sustainability of the aluminium industry being a highly power-intensive industry, where coal contributes to 32 per cent of the production cost of the silvery-white metal.</p>.<p>In India, the industrial power cost is very high despite having the fifth largest coal reserves.</p>.<p>Globally, major aluminium-producing countries are extending support to bring down the power and production costs.</p>.<p>A NITI Aayog report on 'Need for Aluminium Policy in India' also highlighted the challenges of high power costs for the domestic aluminium producers resulting in competitive disadvantage viz-a-viz global players.</p>