Punjab, Haryana Houses pass resolution against Himachal’s ordinance on water cess

Khattar on the last day of the state’s Budget session moved a resolution to oppose the Himachal ordinance, which was unanimously supported and passed by the House.

Published: 23rd March 2023 10:20 AM  |   Last Updated: 23rd March 2023 10:20 AM   |  A+A-

Punjab Chief Minister Bhagwant Mann in the assembly during the budget session on Wednesday. (Photo | PTI)

Express News Service

CHANDIGARH: The Punjab and Haryana assemblies on Wednesday unanimously passed resolutions against the ordinance issued by the Himachal Pradesh government imposing water cess on the hydropower projects for non-consumptive use of water.

Both states have urged the Centre to persuade Himachal to withdraw the cess. However, Himachal has maintained that the state is legally competent to levy the cess.

Punjab Minister of Water Resources Gurmeet Singh Meet Hayer moved the resolution in the state assembly and said that with the imposition of the water cess, there is an additional financial burden of Rs 1,200 crore of which a major portion is likely to be on Punjab.

This cess is not only the infringement of the exclusive rights of the state over its natural resources but will also result in an additional financial burden for power generation.

The resolution reads: “With the new levy of water cess, the Himachal Pradesh government is trying to put an avoidable tax burden on Punjab.” It said the cess is the infringement of the exclusive rights of the state over its natural resources. The cess by Himachal is against the provisions of the Inter-State River Water Disputes Act, 1956, it added.

“This House strongly and unanimously resolves that the cess imposed by Himachal is illegal and should be withdrawn.” In the Haryana assembly, CM Manohar Lal Khattar strongly opposed the Himachal ordinance, saying the water cess is not binding on Haryana and should be withdrawn.

Khattar on the last day of the state’s Budget session moved a resolution to oppose the Himachal ordinance, which was unanimously supported and passed by the House. The House urged the Centre to prevail upon Himachal Pradesh to withdraw the ordinance. Meanwhile, Himachal CM Sukhvinder Singh Sukhu told a gathering on ‘World Water Day’ today that the water available from the state’s rivers could be a source of revenue generation.

On a collision course

HP’s Deputy CM Mukesh Agnihotri says the state is legally competent to levy water cess, while Punjab says Himachal’s ordinance will put an extra financial burden on the state. Haryana maintains the cess not binding on it.


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