Punjab and Himachal Pradesh are likely to lock horns over a recent decision of the hill state to impose a water cess on the hydropower generation on its turf. The Punjab State Power Corporation (Pspcl) is legally examining the decision.
Punjab has one hydropower project in addition to its stake in the Bhakra Beas Management Board (BBMB). The water cess will now be collected by the Himachal Government keeping in view the size of the project and other parameters.
The Bill in the Vidhan Sabha is aimed to raise Rs 4,000 crore per annum through the cess payable on the water being utilised by the power generation companies, which have projects in the state. Recently, the Congress formed the government in the hill state.