+
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 to Invest Rs 600 Billion to Upgrade 1,000 ITIs

As part of its drive to modernise vocational training, the Ministry of Skill Development and Entrepreneurship (MSDE), in collaboration with Gujarat’s Labour and Employment Department, held a State-Level Workshop at the NAMTECH Campus within IIT-Gandhinagar to discuss the National Scheme for ITI Upgradation.The consultation brought together key stakeholders from industry and the training ecosystem to align expectations and support implementation of the scheme, which aims to transform 1,000 Industrial Training Institutes (ITIs) across India using a hub-and-spoke model. The total outlay stands ..

Next Story
Infrastructure Urban

India Unveils Rs 600 Billion Maritime Finance Push

The Ministry of Ports, Shipping & Waterways (MoPSW) hosted the Maritime Financing Summit 2025 in New Delhi, bringing together over 250 stakeholders including policymakers, industry leaders, global investors, and financial institutions. The summit, held under the ambit of Maritime Amrit Kaal Vision (MAKV) 2047, focused on transforming India into a leading maritime power with strengthened financial, infrastructural, and technological capabilities.Union Minister Sarbananda Sonowal emphasised India's strategic progress, noting that average port turnaround times have dropped from four days to u..

Next Story
Infrastructure Urban

Govt Allocates Rs 500 Million To Boost Community Radio

The Central Government, through its ‘Supporting Community Radio Movement in India’ scheme, has allocated Rs 500 million to strengthen the community radio ecosystem across the country. The initiative aims to assist both newly established and long-operational Community Radio Stations (CRSs), ensuring their relevance to local educational, social, cultural, and developmental needs.According to the policy published by the Ministry of Information and Broadcasting, CRSs may be set up by not-for-profit organisations with at least three years of demonstrated community service. These stations are ex..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?