'Illegal': Punjab slams HP's Rs.500-cr BBMB levy
Chandigarh/Shimla, Jan. 7 -- Punjab on Tuesday hit out at the Congress-led Himachal Pradesh government for imposing a 2% land revenue levy on hydel power projects in the state terming it 'illegal.'
Water resources minister Barinder Kumar Goyal, in a press conference, said that the financial burden of nearly Rs.500 crore on the Bhakra Beas Management Board (BBMB), is a 'brazen assault on federal principles and a direct conspiracy against Punjab's interests'.
The Bhakra Beas Management Board (BBMB), which operates two mega hydel projects, Bhakra Dam and Pong Dam in Himachal Pradesh, is expected to pay around Rs.436 crore annually, while Satluj Jal Vidyut Nigam Limited (SJVN), another key player in hydel power in the state, will have to shell out approximately Rs.283 crore each year.
Minister Goyal hit out at the Himachal government, calling the levy a 'brazen assault on federal principles' and a direct conspiracy against Punjab's interests. While Punjab covers 60% of the board's operational expenses, the remaining 40% is shared among Haryana, Rajasthan, Himachal Pradesh and Chandigarh.
Addressing a press conference, Goyal claimed that the new cess has no legal foundation whatsoever and is nothing but another example of Congress' habitual highhandedness. He claimed that the Himachal Pradesh CM has publicly admitted that he initially planned to impose a 4% tax but later reduced it to 2%. "After failing in their attempt to impose water cess, the Congress government has now come up with another dubious levy. No one knows which law they have invoked, where this tax originates from, or under what authority they have arbitrarily assessed the value of land, machinery, and infrastructure on their own," the minister alleged.
Himachal had previously implemented a water cess on hydropower projects on March 16, 2023. However, the central government declared the levy illegal, and the high court also declared it unconstitutional in March 2024.
CM Sukhvinder Singh Sukhu, on January 3, in a meeting with developers of various hydropower projects in the state, had detailed discussions on the assessment of land revenue. Sukhu reiterated that it was the responsibility of hydropower project developers operating in the state to pay the levy, which is a legitimate right of the state.
"All operational hydropower projects must adhere to regulations and ensure the timely payment of land revenue. Discussions could be held to rationalise the rates for land revenue payment. The government was committed to ensuring optimal utilisation of Himachal Pradesh's resources for the welfare and development of its people," Sukhu said in the meeting.
Goyal said that Punjab has a major stake in BBMB, and this arbitrary decision directly harms the state's interests. "We have formally written to BBMB, clearly stating that this levy is unlawful and unacceptable. We will pursue this matter relentlessly, before BBMB, in courts, and at every possible forum," he added. The Punjab minister also slammed Punjab Congress leaders for maintaining silence over the issue. "It is deeply unfortunate that Punjab Congress leaders have chosen to stand against their own state instead of raising their voice for Punjab's rights," he alleged. He said the AAP government will not allow any injustice or financial exploitation of Punjab under any circumstances....
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