Lok Sabha Question No. 3244 (UNSTARRED), answered on 2026-03-12
Subject: Land-Revenue Cess on Hydro Projects
Ministry: POWER
Asked by: Shri Anurag Singh Thakur

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO. 3244 ANSWERED ON 12.03.2026

## LAND-REVENUE CESS ON HYDRO PROJECTS

## 3244. SHRI ANURAG SINGH THAKUR:

Will the Minister of POWER be pleased to state:

- (a) whether the Government is aware of the recent notification issued by the State  Government  of  Himachal  Pradesh  imposing  a  land-revenue  cess  on hydropower and dam projects, including inter-State and Central sector projects such as Bhakra, Pong and Beas-Sutlej systems and if so, the details thereof;
- (b) whether  representations  have  been  received  from  Central  Public  Sector Undertakings,  including  Satluj  Jal  Vidyut  Nigam  Limited  (SJVNL),  National Hydroelectric  Power  Corporation  Limited  (NHPC),  National  Thermal  Power Corporation  Limited  (NTPC)  and  Bhakra-Beas  Management  Board  (BBMB) expressing concerns that the cess may be inconsistent with existing agreements, statutory arrangements and tariff frameworks and if so, the details thereof and the action being planned thereon;
- (c) whether the Government has examined the potential impact of the cess on power  tariffs  payable  by  beneficiary  States  and  consumers,  if  so,  the  details thereof; and
- (d) whether the Government proposes to hold consultations with the concerned State Government and stakeholder States to resolve the matter and if so, the details thereof?

## A N S W E R

## THE MINISTER OF STATE IN THE MINISTRY OF POWER

(SHRI SHRIPAD NAIK)

(a) : The  Government  of  Himachal  Pradesh  (GoHP),  vide  notification  dated 01.12.2025 has notified the annual land revenue at the rate of two percent of the average market value of the hydro power project, as assessed by the Revenue Officers. The land revenue is payable after consideration of objections from any interested party, shall be payable to the GoHP by the occupier of the land used for the project, with effect from 01.01.2026.

Further, on 02.02.2026 and 03.02.2026, GoHP notified the Annual Rate of cess with respect to the Average Market Value of the projects. The notification includes, besides others, projects of Central Public Sector Undertakings (CPSUs) viz  Satluj  Jal  Vidyut  Nigam  Limited  (SJVNL),  National  Hydroelectric  Power

Corporation Limited (NHPC), National Thermal Power Corporation Limited (NTPC) and Bhakra-Beas Management Board (BBMB) (b) :     Following the notification issued by the Government of Himachal Pradesh on 01.12.2025, SJVN Limited, NHPC Limited, NTPC Limited and the Bhakra Beas Management  Board submitted representations to the State Government. Subsequently, these CPSUs and BBMB have also filed civil writ petitions before the  High  Court  of  Himachal  Pradesh,  Shimla,  challenging  the  constitutional validity of the notifications issued by the State Government. (c) :     The potential impact of the land revenue on power tariff has been assessed by the concerned CPSUs and the Bhakra Beas Management Board, and the details thereof are placed at Annexure-I. (d) :       The land revenue notified by the Government of Himachal Pradesh has already  been  challenged  by  the  CPSUs  concerned  and  the  Bhakra  Beas Management Board before the High Court of Himachal Pradesh, Shimla.

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ANNEXURE ANNEXURE REFERRED IN REPLY TO PART (c) OF UNSTARRED QUESTION NO. 3244 ANSWERED IN THE LOK SABHA ON 12.03.2026 *************

POTENTIAL IMPACT OF CESS ON THE POWER TARIFF

| Sl.   | Power Station                                | Name of CPSU /   | Potential impact of the CESS                                     | Potential impact of the CESS   |
|-------|----------------------------------------------|------------------|------------------------------------------------------------------|--------------------------------|
| No.   |                                              | Organization     | Land Revenue Cess as per Notification of the GoHP (Rs. in crore) | Impact on Tariff (Rs./kWh)     |
| 1.    | Bairasiul                                    | NHPC             | 26.71                                                            | 0.40                           |
| 2.    | Chamera-I                                    | NHPC             | 80.14                                                            | 0.48                           |
| 3.    | Chamera-II                                   | NHPC             | 44.52                                                            | 0.30                           |
| 4.    | Chamera-III                                  | NHPC             | 34.28                                                            | 0.31                           |
| 5.    | Parbati-III                                  | NHPC             | 77.17                                                            | 0.39                           |
| 6.    | Parbati-II                                   | NHPC             | 118.72                                                           | 0.38                           |
| 7.    | Nathpa Jhakri HPS                            | SJVN             | 222.60                                                           | 0.39                           |
| 8.    | Rampur                                       | SJVN             | 61.14                                                            | 0.38                           |
| 9.    | Koldam                                       | NTPC             | 118.72                                                           | 0.45                           |
| 10.   | Pong Power Hydro, BSL Project and Bhakra Dam | BBMB             | 433.15                                                           | 0.43                           |

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