Himachal: 16 hydel power projects register for water cess

Tribune News Service

Pratibha Chauhan

Shimla, May 8

Sixteen of 172 hydroelectric power projects in the state have registered themselves for the imposition of water cess. The Jal Shakti Department had issued notices to 172 hydroelectric power projects last month, directing them to register themselves with it within a month for the purpose of water cess.

172 projects issued notices

• The Jal Shakti Department had issued notices to 172 hydroelectric power projects last month, directing them to register with it within a month for the purpose of water cess
• Two private power companies had challenged the imposition of the cess in the Himachal High Court
• Besides Himachal, J&K and Uttarakhand have also imposed water cess on hydroelectric power generation

Two private power companies had challenged the imposition of the cess in the Himachal High Court.

Interestingly, many government and Central public sector undertakings (PSUs) have registered themselves for the cess after receiving the notices. This assumes significance as the Union Ministry for Power had on April 25 written a letter to all state governments and power companies such as the NHPC and the NTPC, among others, terming water cess as illegal and unconstitutional and asked them to challenge it.

“Besides some projects of the HP State Electricity Board, the Chamera power project being run by the National Hydro Power Corporation (NHPC) in Chamba district has registered itself for the imposition of water cess,” says a senior government official. Besides, some private hydroelectric power projects, including on the Parbati and Baspa rivers, had also complied with the directive of the Jal Shakti Department regarding registration for the cess.

The Central Government in its letter also mentioned that “Article 287 and 288 of the Constitution prohibits the imposition of taxes on electricity consumed by the Central Government or sold to the Central Government”.

MP Pradhan, Director, Union Ministry of Power, had written to the Chief Secretaries of all states with regard to the imposition of the water cess. “The cess is illegal and unconstitutional. Any tax or duty on power generation, which encompasses all types of generation, thermal, hydro, wind, solar, nuclear, etc, is illegal and unconstitutional,” he had said.

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