Water Cess case: Union & State Government to present argument before Himachal High Court
Union of India and the State of Himachal Pradesh are likely to present their arguments and counter-arguments in the landmark case of 40 central public sector power companies and major independent Power producers who challenged the levying of water Cess by the state government early this year.
The Division bench of Justice Tarlok Singh Chauhan and Justice Satyan Vaidya was hearing the number of writ petitions filed by the power sector companies seeking quashing of notification of water cess introduced by the Sukhvinder Singh Sukhu Government this year.
Himachal Pradesh High Court has been conducting hearings of this case for the last two days now the court will hear the argument of the Union of India and the State Government on Monday.
Solicitor General Tushar Mehta is likely to appear online to present the argument of the Union government on Monday. The Centre Government has so far opposed the decision of the Sukhu government to introduce Water cess. A letter issued to the State Government Union of India stated that the State could not impose a tax on the water and it is not within the preview of the state.
Advocate General Anup Rattan also presented the counter-argument against the petitions filed by big and medium hydropower companies. State governments have stated that the state could not able to get benefits from the power project despite its people being faced with displacement and several powers companies are earning huge profits from the hydropower project.
Many local irrigation and traditional khuals are affected by the diversification of water to power project and the development of power project have to pay heavy costs in terms of the environment and surrendering natural wealth including land and water for the development of big diversions dams and tunnels.
The state government also justified the imposition of water cess stating that state revenue sources couldn’t be deprived of their due share in the power generation.
Former Union minister and former Chief minister Shanta Kumar who are pioneer of generating state royalties from the power project hailed the decision of the Sukhu government however BJP in the center is opposing the decision of the state Congress government.
The big power companies including NHPC and SJVNL are among the petitioners. According to the state State sector power company Himachal Pradesh Power Corporation Ltd and small power projects have already started payment of Water cess to States and many small power companies also deposited their installation of water cess.
High courts heard the arguments of various power companies in the matter on Wednesday and Thursday now court would continue hearing on Monday in the matter.
Himachal Pradesh High Court didn’t restrain the state from charging Water cess as the court is hearing the petitions on merit.
