Circular dated 25 October cites constitutional provisions to say that no such levies can be imposed. Matter subjudice, says Himachal Water Cess Commission chairman Amitabh Avasthi.
The water cess was opposed by Union govt, as well as neighbouring states of Punjab & Haryana. Sukhu govt says it decided to levy tax 'in line with' BJP-ruled Uttarakhand.
Those drawing water for power generation must now register with 'State Commission for Water Cess on Hydropower Generation'. Some companies have challenged state's water cess bill in HC.
State officials say the Himachal Pradesh government's submission in high court Wednesday is contrary to response received from stakeholders in a meeting last week.
Move comes at a time when state is locked in a tussle with Punjab & Haryana over the cess, while power generation companies have even moved HC challenging the levy.
Union govt letter dated 31 March says states imposing cess on hydel projects may not get access to power from central government's pool of unallocated quota in Central Generating Stations.
Power regulator says impact on consumers will be additional Rs 1.20-1.30 tariff per unit. Ex-govt officials argue that if govt pays subsidy, talk of revenue generation could be amateur idea.
DMK govt accuses Centre of withholding funds, tightening borrowing, unilateral deductions from state accounts. Says Centre's accounting & funding decisions have 'artificially inflated' debt burden.
This is the game every nation is now learning to play. Some are finding new allies or seeing value among nations where they’d seen marginal interest. The starkest example is India & Europe.
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