E-Paper
Punjab assembly declares Himachal Pradesh’s move on water cess ‘illegal’
In the absence of opposition Congress MLAs, unanimously adopts resolution against neighbouring hill state, recommends to state govt to request Centre to prevail upon hill state to withdraw decision
The Punjab Vidhan Sabha on Wednesday unanimously adopted a resolution in the absence of the Congress, declaring the water cess proposed to be levied by neighbouring Himachal Pradesh on hydel power generated in the hill state as “illegal”, and sought its immediate withdrawal.
The House recommended to the state government to request the Centre to prevail upon the Himachal Pradesh government to withdraw the move as it is in violation of the Inter-State River Water Disputes Act, 1956.
The resolution against the move of the newly elected Congress government in neighbouring Himachal Pradesh was introduced by state water resources minister Gurmeet Singh Meet Hayer on the last day of the budget session.
Condemning the Himachal Pradesh government’s decision, Hayer called it a “senseless move”. He questioned the absence of the Congress MLAs in Punjab from the House. “They ran away because this resolution was coming up in the state assembly against the decision of their government in HP,” he said.
Chief minister Bhagwant Mann also criticised the neighbouring state.
Shiromani Akali Dal (SAD), BJP and BSP members backed the resolution.
The Himachal Pradesh Vidhan Sabha had on March 16 passed the Himachal Pradesh Water Cess on Hydropower Generation Bill to repeal the Himachal Pradesh Water Cess on Hydropower Generation Ordinance, promulgated by the governor on February 15, 2023. The Himachal Pradesh government aims to mop up ₹4,000 crore from the cess on hydropower from all 172 hydel projects in the state.
The move drew 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 would also come under its purview.
The resolution passed by the Punjab assembly reads: “This House is concerned about the ordinance issued by the Government of Himachal Pradesh (Ordinance No. 2 of 2023) to impose water cess on hydro power projects for non-consumptive use of water for power generation. Himachal Pradesh’s water resources are now the government’s property, while any proprietary, riparian, or usage rights with any individual, group, company, corporation, society, or community are deemed to have been terminated. The House acknowledges and recognises the right of the state of Punjab over the use of waters flowing into the state for all purposes. All BBMB projects, which have since been constructed with investment made by the state of Punjab, largely happen to be situated within the territorial jurisdiction of the state of Himachal Pradesh. With this new levy of water cess, the government of Himachal Pradesh is trying to put avoidable tax burden on the state of Punjab as it is evident from the objective of the ordinance. The state of Punjab is under pressure from all neighbouring states whether it is the demand of the additional share of the river water or levy of cess recently by the state of Himachal Pradesh. With this new levy, there is an additional financial burden amounting to ₹1,200 crore per annum, of which a major burden is likely to be on Punjab. This new levy is not only an infringement on the exclusive rights of the state over its natural resources but will also result in additional financial burden for generation of power resulting in the higher cost of generation of electricity. The levy of water cess by Himachal Pradesh is against provisions of the Inter State River Water Disputes Act, 1956. Punjab, through the Bhakra Beas Management Projects is already very liberal in releasing 7.19% of electricity of the composite share of Punjab. This House very strongly and unanimously resolves that this levy of water cess imposed by the government of Himachal Pradesh is illegal and, therefore, the same should be withdrawn. This House recommends to the state government to request the Government of India to prevail upon the government of Himachal Pradesh to withdraw the ordinance as it violates a central Act, the Inter State River Water Disputes Act, 1956.”
