6 hydel power projects apply for water cess in Himachal
POWER & RENEWABLE ENERGY

6 hydel power projects apply for water cess in Himachal

Sixteen of the state's 172 hydroelectric power projects have applied for the implementation of a water cess. Last month, the Jal Shakti Department sent letters to 172 hydroelectric power projects, requiring them to register with it for the purpose of water cessation within a month.

The implementation of the cess has been challenged in the Himachal High Court by two commercial electricity firms.

It's interesting to see that several PSUs in the government and central government have registered for the cess after receiving notices. This becomes significance because on April 25, the Union Ministry for Power sent a letter to all state governments and power corporations, including the NHPC and the NTPC, asking them to challenge the legality and constitutionality of water cess.

“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 stated 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”.

The Chief Secretaries of all states had received a letter from MP Pradhan, Director of the Union Ministry of Power, regarding the enforcement 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.

See also:
Kerala plans to produce electricity by reusing dam-released water
Cabinet sanctions Rs 4k cr for 540 MW Kwar Hydro Electric project


Sixteen of the state's 172 hydroelectric power projects have applied for the implementation of a water cess. Last month, the Jal Shakti Department sent letters to 172 hydroelectric power projects, requiring them to register with it for the purpose of water cessation within a month. The implementation of the cess has been challenged in the Himachal High Court by two commercial electricity firms. It's interesting to see that several PSUs in the government and central government have registered for the cess after receiving notices. This becomes significance because on April 25, the Union Ministry for Power sent a letter to all state governments and power corporations, including the NHPC and the NTPC, asking them to challenge the legality and constitutionality of water cess. “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 stated 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”. The Chief Secretaries of all states had received a letter from MP Pradhan, Director of the Union Ministry of Power, regarding the enforcement 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. See also: Kerala plans to produce electricity by reusing dam-released water Cabinet sanctions Rs 4k cr for 540 MW Kwar Hydro Electric project

Next Story
Infrastructure Urban

India Warehousing Show Concludes with Record Participation

The 14th edition of the India Warehousing Show (IWS) 2025 wrapped up successfully at Yashobhoomi (IICC), Dwarka, drawing over 300 exhibitors from 15 countries and welcoming more than 15,000 visitors from India and abroad. As the country’s leading platform for warehousing and supply-chain excellence, the event highlighted cutting-edge technologies, sustainable solutions, and new product innovations that are reshaping the logistics sector.The show was inaugurated by Shri Pankaj Kumar, Joint Secretary – Logistics, DPIIT, Ministry of Commerce and Industry, Government of India, who delivered a ..

Next Story
Infrastructure Urban

Hindustan Zinc Launches Inclusive Language Guide to Promote Workplace Diversity

Udaipur, 3rd July 2025: Hindustan Zinc Limited (NSE: HINDZINC), the world’s largest integrated zinc producer, has made a significant stride towards enhancing workplace equity with the launch of its Guidebook to Inclusive Language. This move underscores the company’s strong commitment to creating a respectful, diverse, and inclusive work environment. The guidebook serves as a framework to encourage inclusive communication, promote sensitivity towards various communities, and support equitable practices throughout the organization.The Guidebook was launched on Hindustan Zinc’s homegrown #Z..

Next Story
Infrastructure Urban

BharatBenz Launches New Mining Range to Support India’s Infra Growth

Chennai, India: The Indian construction and mining equipment sector is set to grow significantly, projected to increase from $16 billion to $45 billion by 2030. To support this expansion, Daimler India Commercial Vehicles (DICV), a wholly owned subsidiary of Daimler Truck AG, has launched its all-new BharatBenz Construction and Mining range. This range includes the HX and Torqshift series models, designed to meet the critical demand for reliable, high-performance vehicles as large contractors modernise their fleets and invest in owned assets.The HX and Torqshift series have undergone rigorous ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?