Amendment to Water Cess Act deferred

The Chief Minister told The Indian Express over phone that minister had accepted the demand for dropping the proposed amendment in the Act and issue would now be referred back to the Standing Committee of the Parliament.

The parliamentary committee, which had not reportedly heard a representation from Himachal before recommending amendments in the law, had dismissed the pleas of other states describing the objections as being of “technical” in nature. Dhumal, who had earlier too held a preliminary meeting with the Union Environment Minister, had also written separate letters to the Chief Minister of hydropower generating states to seek their support in the matter. While, states except Jammu and Kashmir would not coordinate with Himachal Pradesh, Dhumal went ahead and succeeded in getting the proposed amendment deferred indefinately.

The Water Cess Act was made applicable in 1993 and State Pollution Control Boards were authorised to levy water cess at a rate of paisa four per kilolitre. Subsequently in 1997, the states were advised not postpone the realisation of the water cess. Himachal Pradesh, at present rates was supposed to get a revenue of Rs. 360 crore per annum.