Carbon Tax on fossil fuel to fund oil saving infrastructure

Oil prices have fallen to record low levels and Indian government has raised taxes keeping pump prices artificially high.

The Government should consider earmarking a portion of the carbon tax on fuel so collected on modern public transport infrastructure such as metro railways, suburban railways, electric bus rapid transit systems (eBRTS), and high-speed (350 km/hr) and semi high-speed (160/hr) upgradation of Railway infrastructure.

This can provide the Indian public with an alternative to oil imports. It will also benefit the Indian Current Account in a significant manner in the future when oil prices rebound.

Partially From my article – The economics of bullet train published by Qrius-

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