There is a preparation to give tax concession to small power projects of Himachal Pradesh. symbolic photo
Yadvendra Sharma, Shimla. The Himachal Pradesh government is preparing to provide relief on the two percent revenue tax imposed on the hydropower projects running in the state. A decision will be taken on Monday regarding giving them concession. Like other hydro power projects, only two percent revenue tax will be levied, the situation will become clear on Monday. An important meeting in this regard has been held on Monday under the chairmanship of Revenue Minister Jagat Singh Negi. Representatives of hydropower project operating companies of the state will also participate in this meeting. In the meeting, the issue of how much exemption should be given in revenue tax or not especially to small hydropower projects will be discussed in detail.
Decision to impose two percent revenue tax
The state government has decided to impose two percent revenue tax on hydropower projects. Which has been implemented from January 2026. The government argues that hydropower projects affect the natural resources, land and environment of the state. In such a situation, the state should get its proper revenue. The government estimates that Himachal Pradesh will earn an additional income of about Rs 1500 crore annually from this tax, which will give impetus to development works and social schemes.
Small hydropower project operators are demanding relief
Small hydropower project operators say that it would not be practical to impose tax burden on them due to limited production and high costs. Keeping this in mind, the government had asked for written suggestions from them. Now these suggestions will be considered in detail in the meeting on Monday.
Revenue Minister has given indications
Revenue Minister Jagat Singh Negi has already indicated that the government will take a balanced decision understanding the practical difficulties of small projects, so that the interests of the state as well as investment and employment are not negatively affected.
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