Water cess revenue on BBMB projects to be shared

Shimla, March 23

Chief Minister Sukhvinder Singh Sukhu today said in the Vidhan Sabha that the revenue generated from the water cess on BBMB projects shall be distributed among all five states, including Himachal, as the Bhakra Nangal project is a joint venture of Rajasthan, Punjab, Haryana, Himachal, Delhi and Chandigarh.

He reiterated that the Himachal Government was well within its right to impose a water cess on hydropower generation, as “it does not violate the Inter-State River Disputes Act 1956”.

He said, “There is no logic in the contention of our neighbouring states that Himachal has violated the Inter- State River Disputes Act 1956. The imposition of cess does not impact the flow of water into the two states.” He added that none of the provisions of the Water Cess on Hydro Power Generation Act 2023 violated the water rights of the two states. Moreover, water was a state subject.

Jal Shakti Department Minister Mukesh Agnihotri said, “We have imposed water cess on the pattern of Uttarakhand and Jammu and Kashmir. Himachal has the right to impose any tax on the usage of water, which is a state subject.”