The health cost of coal for power generation in India is estimated to range from US$ 3.41 per ton to US$ 51.11/ton depending on the value of statistical The average number is US$ 27.26 per ton.
The annual emissions reduction of CO2 corresponding to incorporating the average health cost to coal price is 644 million tons (33 % of the total emissions) and the % of total annual emission reduction corresponding to US$ 3.41 and US$ 51.11 per ton of cess is 4 % and 61 % respectively.
India has cut subsidies and increased taxes on fossil fuels (petrol and diesel) turning a carbon subsidy regime into one of carbon taxation.
The Fourteenth Finance Commission (FFC) was appointed on 2ndJanuary, 2013 under the chairmanship of Y. V. Reddy.
The FFC has submitted its recommendations for the period 2015-16 to 2020-21. Some of the major recommendations are as follows;
The FFC has radically enhanced the share of the states in the central divisible pool from the current 32 % to 42 % which is the biggest ever increase in vertical tax devolution.
The FFC has also proposed a new horizontal formula for the distribution of the states’ share in divisible pool among the states.
