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Himachal assembly passes bill to levy water cess on hydropower projects
Once the governor gives his assent, the new law will be applicable to the existing 172 power projects and future projects in Himachal. The Bill was introduced in the House by deputy chief minister Mukesh Agnihotri on the first day of the budget session.
The state assembly on Thursday passed the Himachal Pradesh Water Cess on Hydropower Generation Bill 2023 along with amendments proposed by members through a voice vote.
Once the governor gives his assent, the new law will be applicable to the existing 172 power projects and future projects in the state. The Bill was introduced in the House by deputy chief minister Mukesh Agnihotri on the first day of the budget session.
Participating in the debate on the Bill, BJP MLA Randhir Sharma proposed two amendments, which were later accepted by the government. Sharma said the scope of appointment of chairperson and members of Water Cess Commission should be expanded.
For the chairperson’s post, apart from a secretary-rank officer, experts from the fields of engineering, finance, law, and statistics having at least 15 years of experience and not holding any other office-of-profit, shall be eligible. These experts are to be appointed as members of the Commission.
Deputy chief minister Mukesh Agnihotri said people of the state will not be affected by the law. He said the government needs to raise resources to get out of a difficult financial situation and therefore the Opposition should also support the Bill instead of speaking for the interests of industrialists.
The state is expected to get ₹4,000 crore through the water cess, said Agnihotri.
The government will also hold talks with hydropower companies and power projects of less than 5MW capacity, which if run by Himachal residents will be eligible for some relief.
Responding to the deputy CM, Sharma said he was not favouring the capitalists and wanted the resources of Himachal to increase. However, there are many loopholes in this Bill which needed to be plugged, said Sharma while pointing out that the government also takes royalty and upfront premium from the project promoters and if the burden of cess would be passed on to the public.
Congress MLA Rajesh Dharmani suggested that cess should also be imposed on water being used by other states for irrigation.
MLA Janak Raj raised the demand for a share for district and local panchayats in the water cess. He said people of tribal areas have the first right to water, forest and land.
BJP’s Jeet Ram Katwal said the interest of the people of Himachal should be of utmost importance. Leader of Opposition Jairam Thakur said the BJP was not opposed to the Bill and the government will have to find such new ways to generate resources in view of the financial conditions of the state. But it should be ensured that its burden is not passed on to the general public.
He said electricity for industries should be given at cheaper rates. Thakur said due to neighbouring states reducing electricity rates, the industry was moving out of Himachal and this trend should be stopped.
