HP brings bill to impose water cess on hydropower generation
The Himachal Pradesh government on Tuesday tabled a bill, proposing imposition of water cess on hydropower generation in the state, in the Vidhan Sabha on Tuesday.
Shimla: The Himachal Pradesh government on Tuesday tabled a bill, proposing imposition of water cess on hydropower generation in the state, in the Vidhan Sabha on Tuesday.
The bill is expected to draw a sharp reaction from Punjab as the Bhakra Beas Management Board (BBMB) and Punjab State Power Corporation Limited’s (PSPCL) hydro projects in the hill state will also come under its purview.
The bill will repeal the Himachal Pradesh water cess on hydropower generation ordinance, promulgated by the governor on February 15, 2023. Introducing the bill, deputy chief minister Mukesh Agnihotri said it has been brought on the lines of Uttarakhand and Jammu and Kashmir where water cess has already been imposed.
Some people had moved the court against the bill in Uttarakhand and J&K, but the courts rejected their pleas, said Agnihotri, adding that the main purpose of the bill is to generate revenue.
The water cess will be applicable for all 172 hydel projects whether under BBMB or NTPC, said Agnihotri, adding that the government aims to mop up ₹4,000 crore from it.
The bill provides for setting up the state commission for water cess to discharge the functions under the Act and entails an annual expenditure of ₹23 crore. The commission headed by the chief secretary would not have more than four members, who would have a tenure of three years, subject to the maximum age limit of 65 years. Chief minister Sukhvinder Singh Sukhu said the bill has been brought after serious considerations. Under the Act, no user shall draw water from any source for hydropower generation, except in accordance with law and pay water cess as fixed.
According to the bill, hydroelectric projects with head up to 30 metre will have to pay 10 paise per cubic metre cess; those with head above 30 metre and up to 60 metre will have to pay 25 paise; projects with head between 60 and 90 metres will have to pay 35 paise as cess and those with head above 90 metre will have to pay 50 paise per cubic metre cess.
Punjab officials, on their part, said they are yet to study the bill. “We will look into the provisions of the Himachal bill and then firm up a plan,” said a functionary in the state water resources department.