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ICRA, a credit rating agency, has estimated that new mining levies could increase costs for coal-fired thermal power producers by 0.6% to 1.5%.
The agency notes that the increased levies could significantly affect the profit margins of domestic steel and aluminium producers
ICRA estimates that fully enforcing Odisha’s existing mining cess law (up to 15% on iron ore and coal) could lead to an 11% rise in iron ore costs, impacting steel firms.
The rise in Jharkhand’s mining cess (₹100 per tonne) will have a minimal effect of 30-40 basis points on steel industry margins.
ICRA suggests that if other states impose similar levies, the overall impact on the industry might remain modest.
There is concern about states potentially applying new levies retrospectively, creating additional financial uncertainty for firms
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