State cannot levy Water cess on Hydroelectricity under garb of water usage: Himachal Pradesh High Court

The Court ruled that the State legislature lacked the competence to enact a law for levy of cess on water usage for generation of electricity since hydroelectricity and water power is a field occupied by the parliament.
Waterfall (Picture for representation)
Waterfall (Picture for representation)

State is not competent to levy water cess on Hydropower generation under guise of water usage, the Himachal Pradesh High Court held on Tuesday while quashing the Himachal Pradesh Water Cess on Hydropower Electricity Generation Act, 2023 [NHPC Ltd v. State of HP & Ors].

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