The West Bengal sponge iron industry would have to bear an additional cost of nearly Rs 43 crore per year due to the Green cess proposed in the Union Budget, a source in the Bengal sponge iron industry told ISMW.
According to the source, though combined capacity of 59 sponge iron units in the state would be 16,000 ton per day (tpd), actual production would hover around 7,000 tpd.
Assuming 0.87 tons of coal would be required for making one ton of sponge iron, approximately 5,950 tons of coal would be required per day.
As per estimates, till now the Green cess, at Rs 200 per ton of coal, would be costing the state sponge iron industry around Rs 11.90 lakh per day. This would be now costing double of Rs 23.80 lakh. In other words, the industry would have to cough out extra Rs 43.4 crore owing to the enhanced Green cess.
SOurce: ISMW