The water cess has been imposed only on the states hydro-power projects, the Himachal Pradesh Government clarified that the move will not put any financial burden on the common people.
The Governments official spokesperson said that the implementation of water cess was aimed to increase the states revenue and strengthen its economy, so that sufficient funds would be available for welfare schemes.
The 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, added the official.
The clarification from the government assumes significance as it is being apprehended that the burden of cess on the water being used to generate Hydro Power in the state would finally be passed onto the common people.
Notably, the Congress-led State Government has decided to impose water cess on the power projects established in the State to increase its financial Resources. The water cess has been imposed up to a maximum of 50 paise per cubic metre.
The Hydroelectric project with head up to 30 meters will have to pay 10 paise per cubic meter cess; hydroelectric project with head above 30 meter and up to 60 meter will have to pay 25 paise per cubic meter cess; hydroelectric project with head above 60 meter to up to 90 meter will have to pay 35 paise per cubic meter cess; and hydroelectric project with head above 90 meter will have to pay 50 paise per cubic meter cess.