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India Doubles Clean-Energy Tax on Coal, Risking Debt Revamp

  • Tax raised to 400 rupees a ton from 200 rupees earlier
  • India allocates 30 billion rupees a year for nuclear energy

India doubled the clean-energy tax on coal to fight environmental pollution, risking higher electricity-generation costs at a time when the government is seeking to revive ailing power distributors.

The tax on the fuel, which fires more than 60 percent of the nation’s generation capacity, will be raised to 400 rupees a metric ton from 200 rupees, Finance Minister Arun Jaitley said in his budget speech Monday for the year beginning April 1. The government plans to allocate 30 billion rupees ($438 million) annually to come up with a comprehensive plan, spanning 15-20 years, to augment nuclear power generation, he said.