Himachal: 173 hydropower producers asked to pay Rs 871 cr water cess

Pratibha Chauhan

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Shimla, October 5

The state government has issued notices to 173 hydroelectric power projects, asking them to pay Rs 871 crore towards water cess for five months beginning March 2023. However, the power producers have been given the option of making payment in three instalments up to December 31.

This is the first time that water cess is being charged from hydroelectric projects though the Bill regarding it was passed in the Vidhan Sabha during the Budget session in April. Of the total 173 hydroelectric projects in the state, more than 135 have registered with the Jal Shakti Department for paying the cess.

The government is hopeful of generating Rs 2,000 crore revenue from the cess. Uttarakhand, Jammu and Kashmir and Sikkim have also imposed water cess.

The rates of cess on hydropower generation have been fixed under Section 15(2) of the HP Water Cess Hydropower Generation Act, 2023 (Act 7 of 2023). However, the Cabinet had in August decided to slash the cess rates on the request of the power producers, some of whom had challenged it in the HP High Court.