Himachal's treasury has notched up overdraft of Rs 1,000 cr in 1st quarter, it is learnt. Congress's poll promises are expected to burden the state's coffers further.
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.
Move comes close on the heels of a controversial bill passed by the Sukhvinder Singh Sukhu govt levying a water cess on 172 hydropower projects in the state.
With Thursday's landslide victory, Congress regains control over the civic body after over 10 years. At least 20 women candidates won from different wards, according state poll panel data.
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.
With 172 hydro power projects, Himachal govt expects water cess to generate revenue of around Rs 4,000 crore. Small plants will be forced to shut operations, says gencos' association.
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