Mapping India’s Energy Subsidies 2020: Fossil fuels, renewables, and electric vehicles 2020 Annex Update

This document is an annex to the 'Mapping India’s Energy Subsidies 2020' report, providing detailed summary tables for specific energy subsidies and a comprehensive description of tax measures related to coal-fired power in India.

• The central government provides a GST rate concession for electric two- and three-wheelers to reduce their market cost. While fossil fuel vehicles are taxed at 28%, electric vehicles are subject to a 12% GST rate. The amount of subsidy conferred was 1,175.8 INR crore in FY 2018 and 1,481.8 INR crore in FY 2019.
• Between 2014 and 2019, the central government provided budgetary support to the Power Grid Corporation of India Limited (POWERGRID) for the construction of a 220 kV transmission line from Srinagar to Leh via Kargil. The project aimed to improve power supply in Ladakh to support socioeconomic development and tourism, with funding reaching 500 INR crore in both FY 2018 and FY 2019.
• The Pradhan Mantri Ujjawala Yojana (PMUY) includes a provision for project management expenditure (PME) and information, education and communication (IEC) expenditure, set at 2% of the scheme's budget. This funding is intended to help provide clean cooking fuel (LPG) to women and children to improve health outcomes.
• The PDS Kerosene and Domestic LPG subsidy scheme, 2002, which provided direct price support for kerosene and LPG, officially ended on March 31, 2014, though it was extended by one year. Despite ending, 3,293 INR crore in subsidy payments were recorded in FY 2017 as they related to earlier dues.
• Coal production in India is subject to various producer taxes, including royalties set by state governments. While most states use a flat rate of 14% on coal prices, West Bengal uses royalty rates based on coal grade, ranging from INR 4.30 to 6.50 per MT. Total royalty collection rose from 5,684 INR crore in FY 2014 to 9,110 INR crore in FY 2019.
• The central government introduced a GST Compensation Cess of INR 400 per tonne of coal and lignite on July 1, 2017, to replace the abolished Clean Energy Cess. This cess generated 12,997 INR crore in FY 2018 and 19,423 INR crore in FY 2019.
• Imported coal used in the power sector is subject to a 10% basic customs duty under tariff head 2701, which was not subsumed under the GST. Total collection for this duty was 9,887 INR crore in FY 2019.

APA

International Institute for Sustainable Development (2020). Mapping India’s Energy Subsidies 2020: Fossil fuels, renewables, and electric vehicles 2020 Annex Update. https://www.iisd.org/system/files/publications/india-energy-transition-2020-annex.pdf

Chicago

International Institute for Sustainable Development. Mapping India’s Energy Subsidies 2020: Fossil fuels, renewables, and electric vehicles 2020 Annex Update. 2020. https://www.iisd.org/system/files/publications/india-energy-transition-2020-annex.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=Mapping India’s Energy Subsidies 2020: Fossil fuels, renewables, and electric vehicles 2020 Annex Update |date=2020 |url=https://www.iisd.org/system/files/publications/india-energy-transition-2020-annex.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopment2020mapping, author = {{International Institute for Sustainable Development}}, title = {{Mapping India’s Energy Subsidies 2020: Fossil fuels, renewables, and electric vehicles 2020 Annex Update}}, institution = {International Institute for Sustainable Development}, year = {2020}, url = {https://www.iisd.org/system/files/publications/india-energy-transition-2020-annex.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }