Levying water cess doesn’t infringe riparian rights of Punjab: Himachal Jal Shakti min

The Himachal Pradesh government on Wednesday rejected the objections raised by Punjab government over imposition of water cess on the hydro-power projects in the state and asserted its right to enact any such legislation to protect interests of the state.

The state government response comes after Punjab Vidhan Sabha adopting a resolution declaring the water cess move of neighbouring Himachal Pradesh as “illegal”, and sought its immediate withdrawal.

Deputy Chief Minister Mukesh Agnihotri, who holds the portfolio of Jal Shakti department, said that as per the constitutional provision, water is a state subject and the state has all rights over its water resources.

“Further, Himachal Pradesh recognises the Indus Water Treaty, 1960 and the Himachal Pradesh Water Cess on Hydro Power Generation Ordinance, 2023 promulgated by the government of Himachal Pradesh does not violate any of the provisions of the said treaty. The imposition of water cess does not involve any interstate dispute release of water to the neighbouring states, altering the flow patterns in the rivers or diverting water for consumptive and/or non-consumptive usage and even storage of water. Hence, in nutshell, the Ordinance/Bill passed by the state assembly does not infringe any riparian rights of the state of Punjab,” he said.

He sought intervention of the Centre in the matter as Haryana has also raised objections over the move which state deputy CM says will fetch Rs 4,000 crore revenue to the state.

Agnihotri said it was pertinent to none of the provision of the Himachal Pradesh Water Cess on Hydro Power Generation Ordinance, 2023 was against or infringes the Inter State River Dispute Act, 1956. It does not even prohibit the state to impose water cess on power generation on water usage and there was no bar on imposition of water cess under Section 7 of this Act. The minister said Section 7 of the Inter State River Dispute Act, 1956 provides that no state government shall, by reason only of the fact that any works for the conservation, regulation or utilisation of water resources of an inter-state river have been constructed within the limits of the state, impose, or authorise the imposition of, any seigniorage or additional rate or fee (by whatever name called) in respect of the use of such water by any other state or the inhabitants thereof.

“Any dispute or difference between two or more state governments with respect to the levy of any water rate in contravention of the prohibition contained in sub-section (1) shall be deemed to be a water dispute,” he quoted. Moreover, the minister reminded that water Cess has already been imposed by the various state governments like Uttarakhand and Jammu & Kashmir.