Abolishing the carbon tax as a way to protect the environment in India

Due to the fact that in India more than half of coal power plants do not meet the requirements of sulfur oxides emission limits, the government proposed to exempt coal companies from the coal tax, which currently amounts to 400 rupees per ton (about 5 euros) and refers to its extraction and import.The suspension of fees is to enable companies to improve their financial conditions, but, above all, will allow them to accumulate funds necessary for the purchase of modern installations for reducing pollution.In addition, this change will undoubtedly affect the competitiveness of coal compared to renewable energy sources, since the average price of a unit of coal energy in India is 3.5 rupees, and the average price of energy produced from renewables is 2.5-3 rupees.The suspension of the tax will reduce coal prices by 0.25 rupees, which will also lower energy prices.