Inter State River Water Disputes Act does not prohibit Himachal govt to impose water cess: Official

The Inter-State River Water Disputes Act, 1956, does not prohibit the Himachal Pradesh government from imposing water cess on power generation, an official spokesperson said here on Wednesday.

The Himachal Pradesh government has every right to impose water cess within the state as the cess is not being imposed on the waters of neighbouring states, the official added.

The Punjab government's stand that the cess would put an additional financial burden amounting to Rs 1,200 crore on the state, and is in violation of the Inter-State Water Disputes Act, 1956, is not justified, he said in a statement issued here.

Water being the State Subject, the Himachal government has every right to impose any cess/tax on water and the water cess has already been imposed by Uttarakhand and Jammu and Kashmir, he added.

The official said that Himachal has imposed a water cess on the usage of water utilised by various power generators to increase the revenue of the state on the same analogy.

The imposition of water cess does not involve any dispute regarding the interstate release of quantum of water as the volume of water to be released to the neighbouring state(s) is not being affected, the statement said.

The burden on imposition of water cess imposed by the Himachal government in Bhakra Beas Management Board (BBMB's) projects will be distributed among five states equally, including Himachal.

Further, in respect of the Shanan Hydro electrical project, the statement said, it would be transferred to the Himachal Pradesh government after March 2024, in accordance with the period of validity of the lease agreement.

The power being generated by BBMB projects utilises the waters and land of the state. The share being provided by BBMB at the rate of 7.19 per cent is the right of the Himachal government by virtue of a decision of the Supreme Court given on the basis of the proportion of the population, the statement said.

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