HP water cess on hydropower generation to cost Punjab Rs 484 cr

Punjab and Himachal Pradesh are likely to lock horns over a recent decision of the hill state to impose a water cess on the hydropower generation on its turf. The Punjab State Power Corporation (PSPCL) is “legally examining” the decision.

Senior PSPCL officials said the Himachal Pradesh Water Cess on Hydropower Generation Bill 2023, introduced on Tuesday in the Himachal Vidhan Sabha, will burden the already cash-strapped PSPCL by over Rs 484 crore per annum.

Punjab has one hydropower project in addition to its stake in the Bhakra Beas Management Board (BBMB). The water cess will now be collected by the Himachal Government keeping in view the size of the project and other parameters.