Shimla, March 13- Levy of water cess from Hydel projects to fill-in empty coffers

The Himachal Pradesh government informed that levy of water cess on hydro-power projects of the state is being implemented with a objective to get some revenue for the empty coffers of the state, and will not put any financial burden on the common people.

In a press statement, spokesperson of State government said that the implementation of water cess was aimed to increase the state’s revenue and strengthen its economy, so that sufficient funds would be available for welfare schemes.

He said that apart from Himachal Pradesh, water cess was being imposed on hydropower projects in neighbouring states like Uttarakhand and Union Territory of Jammu and Kashmir as well.

He said that 172 hydro power projects have been brought under the purview of water cess. The water cess will be collected by the State Government from the hydro power projects based on the size of the project and other parameters, he added. The implementation of the water cess will not have any financial implications on the general public of the state as the state government will collect this cess only from these hydro-power projects.

The spokesman said that the state government has implemented the Himachal Pradesh Water Cess on Hydropower Generation Ordinance on March 10, 2023 and the Himachal Pradesh Water Cess on Hydropower Generation Bill, 2023 would also be brought in the upcoming assembly session, for which the state cabinet has already given its approval.


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