The government’s decision to impose water cess on hydropower projects in the state has not gone down well with power producers. Stung by the decision, the power producers are mulling options ranging from urging the government to reconsider the decision to taking legal recourse.
The government has imposed a cess on the use of water in hydropower projects, ranging from Rs 0.10 per cubic metre to Rs 0.50 per cubic metre depending on the ‘head’ of the project. “We are expecting to earn around Rs 500-700 crore annually through water cess on hydro projects,” said a senior government functionary.
