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Himachal has every right to impose water cess: Mukesh Agnihotri
Himachal deputy chief minister Mukesh Agnihotri on Wednesday said the Inter-State River Water Disputes Act, 1956, does not prohibit the state to impose water cess on power generation for the use of water and there is no bar on imposition of water cess under Section 7 of this Act.
Responding to the Punjab legislative assembly adopting a resolution declaring Water Cess Bill passed by Himachal Pradesh as illegal, deputy chief minister Mukesh Agnihotri on Wednesday said the Inter-State River Water Disputes Act, 1956, does not prohibit the state to impose water cess on power generation for the use of water and there is no bar on imposition of water cess under Section 7 of this Act.
In a written statement to the media, Agnihotri said the state has every right to impose water cess within the state as the cess is not being imposed on the waters of neighbouring states.
The Himachal Pradesh Assembly passed Water Cess on Hydropower Generation Bill 2023 on March 16.
“The imposition of water cess does not involve any dispute regarding the interstate release of quantum of water as the volume of water to be released to the neighbouring state(s) is not being affected,” said the deputy CM.
He said water cess has already been imposed by various states like Uttarakhand and Jammu & Kashmir.
“On the same analogy, the government of Himachal Pradesh has imposed water cess on the usage of water utilised by various power generators to increase the revenue of the state,” he asserted.
The chief minister said that the state has the right to impose any tax on the usage of water as water is the state’s subject. The burden on the imposition of water cess imposed by Himachal on BBMB’s projects shall be distributed amongst five states equally, including Himachal Pradesh.
“Further, in respect of the Shanan Power Project, this project shall be transferred to the government of Himachal Pradesh after March 2024 in accordance with the period of validity of the lease agreement,” he said.
The share being provided by the BBMB at 7.19% is the right of the state of Himachal Pradesh by virtue of a decision of the Supreme Court given on the basis of the proportion of the population. Moreover, the power being generated by BBMB projects utilises the waters and land of the state of Himachal Pradesh, said Agnihotri.
As such the state has a right of 7.19% in the power to be generated out of these projects.
“Therefore, in view of the above facts, it can be concluded that statements with regard to an additional financial burden amounting to ₹1200 crore per annum on the state of Punjab and violation of the Inter-State Water Disputes Act, 1956, are not Justifiable,” he said.
The water is the state’s subject and HP has every right to impose any cess/tax on water. Hence imposition of water cess does not fall within Section 7 of the Inter-State Water Dispute Act, 1956, as this does not create any dispute with regard to availability of volume of water to the neighbouring states, added the deputy CM.
