Haryana Chief Minister Manohar Lal strongly opposed the ordinance passed by the Himachal Pradesh Government to impose a water cess on hydropower projects for non-consumptive use of water for power generation. He said that this water cess is illegal and not binding on the State of Haryana. Therefore, the Himachal Government should withdraw it immediately.
The Chief Minister moved a resolution to oppose this ordinance on the last day of the budget session of State Vidhan Sabha. The resolution was unanimously supported and passed by the entire House. The House also urged the Central Government to prevail upon the Himachal Pradesh Government to withdraw the ordinance as it violates the Inter-State Water Disputes Act, 1956.
With this new levy, there will be an additional financial burden amounting to Rs. 1200 crore per annum on partner states, out of which around Rs. 336 crore will be a burden on the State of Haryana. The Chief Minister said that this new levy is not only an infringement of the exclusive rights of the State over its natural resources but will also result in an additional financial burden for the generation of power, resulting in a higher cost of electricity generation.
The levy of water cess by the Government of Himachal Pradesh is against the provisions of the Inter-State Water Dispute Act, 1956. The State of Haryana, through the Bhakra Beas Management Projects, is already liberal in releasing 7.19 percent of electricity from the composite share of Haryana and Punjab to HP.”
