Hydel-power cos told to pay for water (Indian Express 11 October 2010)

Jammu and Kashmir Assembly has passed a Bill laying down that companies running hydro-electric power projects in the state pay for the water they use to generate electricity.
The move, the government said, will earn the state Rs 848 crore a year in additional revenue. The Bill will be taken up for passage by the Legislative Council on Monday.
The J-K Water Resources (Regulation and Management) Act also levies taxes on water used for irrigation and drinking, which, the government said, will fetch the exchequer another Rs 150 crore. “We are always asked to raise our own resources. Water is the biggest resource we have. We can’t tax generation of electricity (but) we can charge on water usage. This legislation will help us to use our water resources to generate revenue,” Chief Minister Omar Abdullah told The Indian Express. “This, however, is not a precursor for privatisation (of water resources). We have a long long way to go for that.”
The Bill envisages establishment of State Water Regulatory Authority for “sustainable management, allocation and utilisation of water resources, fixing the rates for use of water and other connected matters”.
Irrigation Minister Taj Mohiuddin said: “As of now, 33,930 million tonne water is utilised (by NHPC and the state’s PDC, which generate Rs 7,140 crore a year in revenue from the state). This will generate revenue of Rs 848 crore.”