Proceeds from higher coal cess will be to the tune of Rs. 40,000 crore by 2018 which will be used for cleaning up the environment as well as research programmes.

"We want to develop new technologies for Underground Coal Gasification... Coupled with 'Namami Gange' programme and clean river programme various initiatives of environment will be supported with this Rs. 400 cess which to my mind will give the government nearly Rs. 40,000 crore by next year or latest by a year after next," Coal and Power Minister Piyush Goyal told reporters here.

"All coal that is used in this country whether it is domestic or imported will have a levy of environment cess of Rs. 400 a tonne which will help us support clean environment... help us to support research and development for clean coal technologies," Mr Goyal said.

The government, he said, is very keen on enhancing the country's renewable energy five-fold to 175 GW and cleaning the rivers of this country.

"Our 'Namami Gange' programme...has a dimension of cleaning all the major rivers of this country and then taking it to the next level to the smaller rivers," Mr Goyal said.

"So we are not talking of only cleaning Ganga. Yamuna is equally important for us and all the rivers in this country," the minister added.

The Union Budget 2016-17 has proposed to rename 'Clean Energy Cess' levied on coal, lignite and peat as 'Clean Environment Cess' and its incidence has been increased to Rs.400 per tonne, from Rs. 200 per tonne.

The minister had earlier said that the budgetary proposal to double the cess on coal will not lead to hike in power tariffs as distribution companies will benefit a lot from UDAY scheme.