The Indian Government proposed to waive carbon tax of Rs400 ($5.61/mt) on import and production of coal to benefit the steel and aluminium producers, like National Aluminium, Hindalco Industries and Vedanta.

 

The move aims to benefit the industry by bringing down the cost of production of aluminium and steel by Rs4,000-5,000 and Rs400-500/mt, respectively.

 

Coal is used by captive power plants in the smelting process for producing aluminium. The tax rebate will benefit aluminium producers more than the steelmakers who use it as a fuel mix.

 

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