Lok Sabha The Energy Coordination Committee has proposed to levy tax on polluting industries.In the 10th Meeting of the Energy Coordination Committee held on 27th June 2008, an observation was made that "Carbon Tax on power producers using coal, oil, etc. could be considered to fund the upscaling of Renewable Energy (RE) initiatives." However, no decision has been taken in this regard.

Carbon tax proposed to fund renewable energy upscaling; recommendation noted but no decision taken. A proposal to consider a carbon tax on power producers using coal, oil and similar fuels as a means to fund upscaling of renewable energy was recorded; the recommendation remains under consideration and no formal decision has been taken.