J&K To Tax Water Used To Generate Power by NHPC-Water Bill Passed, To Fetch 1000 Cr Revenue-3445 MW Power Projects Under Execution-10/10/10

J&K To Tax Water Used To Generate Power by NHPC


Srinagar, Oct 10- In a significant move of far reaching consequences, the Jammu and Kashmir Assembly on Saturday passed a landmark bill that after becoming law will secure for the state total control of its vast water resources and make companies pay for the water they use to generate electricity.


Chader River, Zanskar, Kargil Kashmir

The Water Resources Regulation and Management Bill, passed in the Assembly, envisages taxing the water used for power generation in the state by the government of India owned National Hydro Electric Power Corporation (NHPC) and state owned power companies.

With the passage of the bill, Kashmir has become first state to levy usage of water for generating electricity and it is expected to generate an annual income of Rs 850 crore for the state.

The move is being seen as an innovative way to make the Centre pay for generating power through projects in the state and make up for the losses as a result of the Indus water treaty with Pakistan.

Though the law would bring every water user under its purview, the worst hit would be NHPC as it has almost half of its generation coming from J&K.

NHPC alone would be liable for taxes to the tune of Rs 5000 crore, the minister for irrigation and flood control, Taj Mohiuddin, said.

“Not just NHPC, we want everyone including the state-owned Power Development Corporation (JKPDC) to pay for the water it uses to generate energy,” he said.

On becoming an Act, the legislation would also make water for irrigation and drinking taxable.

The government control would now extend to rivers, streams, lakes and ground water, and there would be no room for misuse, the minister said.

The minister said at present the volume of water present in the state was roughly about one lakh million acre feet out of which 33930 million cubic of water was exploited by the companies for power generation.

From an identified 20,000 megawatt potential, Kashmir has been able to harness only 2,456 megawatts so far.

The 1960 Indus Water Treaty between India and Pakistan curtailed the rights of Jammu and Kashmir on three of its major rivers upper Chenab, Jhelum, and Indus.

The treaty prevented Jammu and Kashmir to exploit water resources even for irrigation let alone power generation.

Discontent over the exploitation of Kashmir’s vast water resources by both India and Pakistan have been growing over the years and remains a vital ingredient of Kashmir’s political discourse at present. KONS/Agencies


Water Bill Passed, To Fetch 1000 Cr Revenue
3445 MW Power Projects Under Execution