Himachal Targets ₹1,018 Crore in Land Revenue: Hydropower Projects First in Line

In a bold move to boost public finances, the Himachal Pradesh government has set its sights on collecting ₹1,018 crore in land revenue this financial year. The plan, which began as an ordinance and was later passed as a bill in the Assembly, has now received the Governor’s nod—making it official.

So, what’s changing?

Under the newly amended Himachal Pradesh Land Revenue Act, 2025, the government now has the power to impose special assessments on land used for non-agricultural purposes—think hydropower plants, commercial complexes, and industrial setups. These assessments will be based on the current cost of the projects, with a cap of 4%. The exact rate? That’ll be decided by the government soon.

Hydropower Projects in the Spotlight

Officials say the rollout will begin with hydropower projects, which often occupy vast stretches of diverted land. These projects, while crucial for energy generation, have long escaped direct land revenue contributions. Now, they’ll be expected to pay their fair share.

What About Agricultural Land?

The amendment also covers agricultural land that’s been repurposed for commercial or industrial use. In such cases, the revenue will be calculated using a mix of valuation methods—rental value, market price, or other government-approved formulas.

A Green Twist: Environmental Cess & Fund

In a welcome eco-conscious move, the government will also introduce an environmental cess on the collected land revenue. The money will go into a newly created environmental fund, aimed at protecting and restoring ecosystems—especially in areas impacted by large-scale infrastructure and hydropower development.

This initiative marks a significant shift in how land is taxed and how commercial projects contribute to the state’s economy and environment. It’s a step toward balancing development with sustainability—and ensuring that those who profit from the land also help preserve it.