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Won’t pay a single paisa to Himachal as water cess: Punjab CM in Assembly
Mann was categorical when he said that they were already having a dispute over water with another neighbour Haryana as he accused the Congress of being at the root of all water issues being faced by the state.

WARNING the Congress-led Himachal Pradesh government that the state would not pay a single paisa as water cess on hydro-power projects, Punjab Vidhan Sabha on Wednesday unanimously passed a resolution condemning the hill state’s recent ordinance levying the water cess. As CM Bhagwant Mann and Water Resources minister Gurmeet Singh Meet Hayer said they would not pay a single paisa, Cabinet minister Aman Arora warned that Punjab could also levy cess on apple trucks coming to the state from Himachal and also on tourists going to the hills.
Terming it an attack on the federal structure, AAP leaders said that it violates the Inter State River Water Disputes Act, 1956. Mann was categorical when he said that they were already having a dispute over water with another neighbour Haryana as he accused the Congress of being at the root of all water issues being faced by the state.
Gesturing towards Opposition benches, where the Congress members sit, the CM said the Congress had 7-8 faces for different states. Congress members were not a part of the proceedings of the house as they had walked out of the house earlier during the day. “They have different faces for different states. The SYL issue is also a gift of the Congress party,” he said.
Without naming former CM Amarinder Singh, Mann said, “They used to call this leader Paanian da Rakha. But what did he do? He annulled the water agreement on the floor of this house when elections were due in Haryana. The then Congress-ruled Centre sent it to President, who further sent it to the Supreme Court. After 20 years, the SC has now given an advice to the states to sit together and find an amicable solution.
And the issue is not being sorted. Had they been here, I would have taken answers from them off these questions. But they already knew. That is why they chose to walk out.”
He said the issue concerned all. “As many as 80 per cent of our blocks are in dark zone. We are not left with any river water. When I was attending SYL meeting with the Haryana CM, I invited them that we will take them over Satluj in the helicopter. It is just a nullah.”
The CM said that the cess is irrational. “We are giving water to Rajasthan.
Haryana wants water from us and HP is now levying a cess. They want us to transport our coal from Sri Lanka. They do not allow our tableaux at the Republic Day. What do they think about Punjab ? This is unfair. And now, Centre would be too happy to note that Punjab will be fighting with Himachal. I would request Himachal not to go down this route.”
He said that the state had spoiled its land by just growing rice for the rest of the country while the state does not consume rice on its own. Farmers in Bajakhana near Kotkapura consider themselves at the tail end of the canal system while they are in the middle.
The resolution
Meet Hayer moved the resolution that read, “ This House is concerned about the Ordinance issued by the Government of Himachal Pradesh (Ordinance No. 2 of 2023) to impose water cess on the Hydro Power Projects for non-consumptive use of water for power generation. Himachal Pradesh’s water resources are now the government’s property, while any proprietary, riparian, or usage rights with any individual, group, company, corporation, society, or community are deemed to have been terminated. The House acknowledges and recognises the right of Punjab over the use of waters flowing into the state for all purposes.
All the BBMB projects that have since been constructed with investment made by Punjab, largely happen to be situated within the territorial jurisdiction of Himachal Pradesh. With this new levy of water cess, the Himachal Pradesh government is trying to put avoidable tax burden on Punjab as it is evident from the objective of the Ordinance. Punjab is under pressure from all neighbouring states whether it is the demand of the additional share of the river water or levy of cess recently by Himachal. With this new levy, there is an additional financial burden amounting to Rs 1200 crore per annum, of which major burden is likely to be on Punjab.
This new levy is not only the infringement of the exclusive rights of the state over its natural resources but will also result in additional financial burden for generation of power resulting in the higher cost of generation of electricity.
The levy of water cess by Himachal is against the provisions of the Inter State River Water Disputes Act, 1956. Punjab through the Bhakra Beas Management Projects is already very liberal to release 7.19% of electricity of the composite share of Punjab.
This House very strongly and unanimously resolves that this water cess imposed by Himachal is illegal and therefore the same should be withdrawn by them. This House recommends to the state government to request the Centre to use its good offices to prevail upon Himachal Pradesh to withdraw the Ordinance as the same is in violation of the Central Act i.e. Inter State River Water Disputes Act, 1956.”