Environmental legislation news: India coal tax to raise clean energy funds

A piece of environmental legislation introduced by the Indian government could raise about $660 million (£433 million) for researching and producing clean energy technology.

The cash raised from this coal tax, which levys a charge of just over $1 for each ton of coal used, will be put into the National Clean Energy Fund, with the financial estimate based on the 600 million ton yearly usage of the substance in India.

Internet resource Revolt explained that the recent budget revealed that the capital costs for investors in the solar industry have also been reduced for the fiscal year 2010/11.

The news provider labelled the moves as indicative of India's progress in terms of becoming a low-carbon economy, with such environmental legislation making implementation easier.

Pranab Mukherjee, minister of finance in India, presented the budget to the country on February 26th, which contained details of the coal tax and solar power discounts.

Posted by Joseph Hutton