J&K High Court strikes down water levy on hydropower projects

Economy · First reported 29 Oct, 19:16 · Updated 01:15

Image: Wikimedia Commons · NASA Johnson Space Center · Public domain

The Jammu & Kashmir and Ladakh High Court struck down the 2010 Water Resources Act’s water-use charges on hydropower projects and quashed demand notices to 13 independent power producers. The court held that the levy amounted to a tax on electricity generation and could not be imposed under that law.

The High Court struck down the 2010 Water Resources Act and quashed demand notices to 13 independent power producers.
The court said the water-use charges amounted to a tax on electricity generation, a matter beyond the erstwhile state legislature’s powers.
The court rejected the government’s arguments about regulating water use and said later adoption of the law did not validate it.

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Key facts

Law struck down: 2010 Water Resources Act.
Producers affected: Demand notices to 13 independent power producers were quashed.
Court’s conclusion: The charges amounted to a tax on electricity generation, beyond the erstwhile state legislature’s powers.