Power producing companies are mounting pressure on the Indian government to reduce what they claim are excessive taxes on coal, which is making electricity expensive for the end users.
A number of representations have been made to the Coal Ministry by a host of power producing companies as the government plans its annual budget, it is reliably learnt.
A top source within the Coal Ministry said representations have been made by companies to explain how various levies and charges almost doubles the fuel prices for the coal fired power projects that have to pass on this burden to the consumers through regulatory process.
According to the experts in the sector, the present tax regime in the coal sector is distorting the budgeting systems for states and centre. Heavy tax structure on coal is compelling the state governments to cough up more for the subsidies on electricity tariff to the agriculture sector and weaker sections of the society.
The move comes at a time when Indians are paying all time high for petrol and diesel. According to estimates, taxes and other charges account for 60-70 per cent of the petrol and diesel prices.