Shimla: To increase the revenue of the state, the government has imposed a water cess on the hydro-power projects of the state.
The state government has brought as many as 172 hydropower projects under the purview of water cess. The water cess will be collected by the State Government from the hydropower projects keeping in view the size of the project and other parameters.
The state government 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.
An official spokesperson of the state government has clarified that the water cess won’t put any financial burden on the common people as the state government will collect water cess only from hydro-power projects
“The implementation of water cess was aimed to increase the state’s revenue and strengthen its economy so that sufficient funds would be available for welfare schemes,” the spokesperson further added.
Apart from Himachal Pradesh, the water cess was being imposed on hydropower projects in the neighbouring state Uttarakhand and the Union Territory of Jammu and Kashmir as well.
