In a resolute stand against the imposition of water cess on electricity by certain states, Punjab Power Minister Harbhajan Singh ETO on Tuesday raised his voice at the Conference of Power and New and Renewable Energy Ministers held at Pragati Maidan in New Delhi.

Despite clear declarations by the Union Government that this practice is illegal, some states, including Himachal Pradesh, Uttarakhand, Sikkim, Jammu and Kashmir, have continued to levy this unwarranted tax. Minister Harbhajan Singh emphasized that such practices are unfairly driving up electricity rates for states like Punjab, which are left with no alternative but to procure electricity at higher costs.

During the two-day conference, Harbhajan Singh ETO pointed out that the Union Power Ministry had communicated to the states on multiple occasions that imposing water cess on electricity is illegal. Yet, some states have persisted in implementing this tax, which is detrimental to both the sellers and buyers of electricity.

The Minister appealed to the Union Government to take strict action against the states indulging in these unlawful practices. He stressed that such action is vital to providing relief to purchasing states like Punjab, which are currently burdened with exorbitant electricity rates.

Echoing the concerns raised by the Punjab Cabinet Minister, Union Minister for Power and Renewable Energy RK Singh reiterated the Ministry’s stance on the matter. He affirmed that the imposition of water cess is entirely unconstitutional, and the Union Power Ministry is committed to putting an end to this practice. Additionally, the Ministry will lend support to purchasing states in their legal battle against this unjust imposition of water cess.

Expressing his gratitude to Union Minister RK Singh for backing this critical issue, Minister Harbhajan Singh also proposed the construction of small balancing reservoirs downstream of major dams in India which could serve a dual purpose — providing water for irrigation and enabling power generation at full capacity.