The power ministry needs to persuade states not to levy any water cess on hydro power projects, as the states get free power from such plants in their jurisdiction, said a parliamentary panel Friday.
Some states have levied water cess for each cubic metre of water which is used by the hydro power plants, according to a report by the panel.
The committee wants the ministry to “persuade the states not to levy any water cess on hydro power projects”, a parliamentary panel on energy said in its report tabled in Parliament Friday.
However, the committee observed that there is no sound rationale behind this, as there is no consumptive use of water by hydro power plants because water just passes through the turbines and goes to the river again.
The panel found that imposing water cess is not fair considering the provision of 12 per cent of free power to the respective states from these projects. Read More