The Punjab Vidhan Sabha on Wednesday unanimously adopted a decision within the absence of the Congress, declaring the water cess proposed to be levied by neighboring Himachal Pradesh on hydel energy generated within the hill state as “illegal”, and sought its rapid withdrawal.

The House really helpful to the state authorities to request the Center to prevail upon the Himachal Pradesh authorities to withdraw the transfer as it’s in violation of the Inter-State River Water Disputes Act, 1956.

The decision towards the transfer of the newly elected Congress authorities in neighboring Himachal Pradesh was launched by state water sources minister Gurmeet Singh Meet Hayer on the final day of the funds session.

Condemning the Himachal Pradesh authorities’s choice, Hayer known as it a “senseless move”. He questioned the absence of the Congress MLAs in Punjab from the House. “They ran away because this resolution was coming up in the state assembly against the decision of their government in HP,” he mentioned.

Chief minister Bhagwant Mann additionally criticized the neighboring state.

Shiromani Akali Dal (SAD), BJP and BSP members backed the decision.

The Himachal Pradesh Vidhan Sabha had on March 16 handed the Himachal Pradesh Water Cess on Hydropower Generation Bill to repeal the Himachal Pradesh Water Cess on Hydropower Generation Ordinance, promulgated by the governor on February 15, 2023. 4,000 crore from the cess on hydropower from all 172 hydel initiatives within the state.

The transfer drew a pointy response from Punjab because the Bhakra Beas Management Board (BBMB) and Punjab State Power Corporation Limited’s (PSPCL) hydro initiatives within the hill state would additionally come underneath its purview.

The decision handed by the Punjab meeting reads: “This House is concerned about the ordinance issued by the Government of Himachal Pradesh (Ordinance No. 2 of 2023) to impose water cess on hydro power projects for non-consumptive use of water for power generation . Himachal Pradesh’s water resources are now the government’s property, while any proprietary, riparian, or usage rights with any individual, group, company, corporation, society, or community are deemed to have been terminated. The House acknowledges and recognizes the right of the state of Punjab over the use of waters flowing into the state for all purposes. All BBMB projects, which have since been constructed with investment made by the state of Punjab, largely happen to be situated within the territorial jurisdiction of the state of Himachal Pradesh. With this new levy of water cess, the government of Himachal Pradesh is trying to put avoidable tax burden on the state of Punjab as it is evident from the objective of the ordinance. The state of Punjab is under pressure from all neighboring states whether it is the demand of the additional share of the river water or levy of cess recently by the state of Himachal Pradesh. With this new levy, there is an additional financial burden amounting to 1,200 crore per annum, of which a major burden is likely to be on Punjab. This new levy is not only an infringement on the exclusive rights of the state over its natural resources but will also result in additional financial burden for generation of power resulting in the higher cost of generation of electricity. The levy of water cess by Himachal Pradesh is against provisions of the Inter State River Water Disputes Act, 1956. Punjab, through the Bhakra Beas Management Projects is already very liberal in releasing 7.19% of electricity of the composite share of Punjab. This House very strongly and unanimously resolves that this levy of water cess imposed by the Government of Himachal Pradesh is illegal and, therefore, the same should be withdrawn. This House recommends to the state government to request the Government of India to prevail upon the government of Himachal Pradesh to withdraw the ordinance as it violates a central Act, the Inter State River Water Disputes Act, 1956.”