TheHimachalPradesh government will now charge tax on water used in power projects set up in the state. To increase revenue, chief minister Sukhvinder Singh Sukhu-led government has imposed water cess on power projects by bringing in an ordinance. According to sources, the intends to collect revenue of over Rs 1,000 crore through this water cess.
Through a gazette notification published on Friday the governor, in exercise of powers vested in him under Section 17(1) of theHimachal Pradesh Water CessonHydro Power Generation Ordinance, 2023 (Ordinance No. 2 of 2023), has ordered the imposition of water cess on all Hydro Power projects in the state.
There are more than 50 power projects in Himachal and work is going on on more than 30. This tax will be applicable on all these projects. Total identified hydro power potential of the state is around 27,436 MW and harnessable power potential is 23,750 MW, out of which, 10,781.88 MW has been harnessed while over 12,000 MW power is yet to be done.