Himachal CM Sukhu defends his government's move to impose water cess on hydro-power generation

Tribune News Service

Shimla, March 23

Adopting a stern stand against opposition by Punjab and Haryana to the imposition of water cess by Himachal, Chief Minister Sukhvinder Singh Sukhu on Thursday said Himachal Government was well within its right to impose water cess on hydro-power generation as it had not violated the Inter State River Dispute Act 1956.

“There is no logic in the contention of our neighbouring states that Himachal has violated the Inter State River Dispute Act 1965 as the imposition of the cess in no way impacts the flow of water to the two states,” he said while making a statement in the Vidhan Sabha today. He added that none of the provisions of the Water Cess on Hydro Power Generation Act 2023 violate the water rights of the two states and moreover water is a state subject.

“Despite a total of 45,000 hectares of land getting submerged under the three reservoirs of the Bhakra Beas Management Board (BBMB), Himachal has not got any water rights and on the contrary the state has suffered adverse environmental impact, resulting in climate change,” he remarked. He added it is not just agriculture and horticulture production that had been affected but people living in the vicinity of these reservoirs were facing social and health issues.

The revenue generated from imposition of water cess on BBMB project shall be distributed equally among all five states, including Himachal as Bhakra Nangal project is a joint venture of Rajasthan, Punjab, Haryana, HP, Delhi and Chandigarh,” he said. He also clarified the position on the Shanan hydro project, which he said will be transferred to Himachal from Punjab after March 2024 in accordance with the period of validity of lease agreement.

Sukhu went on to say that BBMB had not taken any steps to improve the health and social living conditions of the local population despite the Environmental Social Impact Assessment of such projects clearly indicating this deterioration in quality of life for the villagers. “I would like to state that people had not been rehabilitated even 60 years after these projects came up despite having been deprived of their homes, lands, temples and cultural sites,” he further elaborated.

Jal Jeevan Minister Mukesh Agnihotri later said water cess had been imposed on 172 hydel projects and it will in no way impact the water flow into Punjab and Haryana. “We have imposed water cess on the same analogy as the governments of Uttrakhand and Jammu and Kashmir, as the State has the right to impose any tax on usage of water, which is state subject. Agnihotgri said the cess has been imposed for non-consumptive use of water for hydro-power generation by projects located within Himachal,” he stated.

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