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The Himachal Pradesh Water Cess On Hydropower Generation Act, 2023

Himachal Pradesh · state statute
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THE HIMACHAL PRADESH WATER CESS ON HYDROPOWER 
GENERATION ACT, 2023 
 
ARRANGEMENT OF SECTIONS 
 
Sections: 
CHAPTER-I 
PRELIMINARY 
1. Short title and commencement. 
2. Definitions. 
 
CHAPTER-II 
USAGE OF WATER BY INSTALLATION OF HYDROPOWER 
GENERATING UNIT 
 
3. Installation of scheme for usage of water. 
4. Submission of sanctioned scheme for usage of water by the user. 
5. Acceptance of application. 
6. Information to the user. 
7. Registration for usage of water. 
8. Grant of registration certificate. 
9. Registered user not to do certain things. 
10. Duties, obligations and responsibilities of the registered user. 
11. Control and safety provisions. 
 
CHAPTER-III 
ASSESSMENT OF WATER DRAWN BY USER 
 
12. Assessment of water drawn by user. 
13. Damaging the flow measuring device or any fitting. 
14. Fraud in respect of flow measuring devices. 
 
CHAPTER-IV 
WATER CESS 
15. Fixation of water cess. 
16. Recovery of water cess. 
17. Procedure for assessment. 
 
CHAPTER-V 
STATE COMMISSION 
 
18. Establishment of the Commission. 
19. Qualifications for appointment of Chairperson and members of the 
Commission. 
20. Constitution of a Search Committee. 
21. Term of office and conditions of service. 
22. Removal of Chairperson or member. 
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                                                                        THE HIMACHAL PRADESH WATER CESS ON HYDROPOWER GENERATION ACT, 2023 
 
 
23. Officers and other employees of the Commission. 
 
 
CHAPTER-VI 
POWERS, FUNCTIONS AND ACCOUNTS OF THE COMMISSION 
 
24. Functions of the Commission. 
25. Powers of the Commission. 
26. Proceedings before the Commission. 
27. Power of entry and seizure. 
28. Delegation of powers. 
29. Penalty for non-compliance of directions of Commission. 
30. Power to adjudicate. 
31. Factors to be taken into account by adjudicating officer. 
32. Penalty not to affect other liabilities. 
33. Grants and loans by the Government. 
34. Establishment of fund by the Government. 
35. Account of the Commission. 
36. Annual report of the Commission. 
37. Budget of the Commission. 
 
CHAPTER-VII 
 
MISCELLANEOUS 
 
38. Directions by the Government. 
39. Protection of action taken in good faith. 
40. Members, officers etc. to be public servants. 
41. Provisions of the Act to be in addition to and not in derogation of 
other laws. 
 
42. Power to make rules. 
43. Powers of Commission to make regulations. 
44. Power to remove difficulties. 
45. Overriding effect. 
46. Repeal and savings. 
 
_________________ 
 
 
 
 
 
 
 
 
 
 
 
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                                                                        THE HIMACHAL PRADESH WATER CESS ON HYDROPOWER GENERATION ACT, 2023 
 
 
THE HIMACHAL PRADESH WATER CESS ON HYDROPOWER 
GENERATION ACT, 2023 
(Act No. 7 of 2023)1 
        (Received the assent of the Governor on the 3rd April, 202 3 and was 
published both in Hindi and English in the Rajpatra  (e-Gazette), Himachal 
Pradesh  dated 6th April, 2023, pp. 98-122). 
 
 An Act  to levy water cess on hydropower generation in the State of 
Himachal Pradesh. 
 
BE it enacted by the Legislative Assembly of Himachal Pradesh in the 
Seventy-fourth Year of the Republic of India as follows:— 
 
CHAPTER-1 
 
PRELIMINARY 
 
1. Short title and commencement. —(1) This Act may be called the 
Himachal Pradesh Water Cess on Hydropower Generation Act, 2023. 
 
(2) It shall be deemed to have come into force on the 10th day of March,  
2023. 
 
2. Definitions.—In this Act, unless the context otherwise requires,- 
 
(a) “Commission” means the Himachal Pradesh State Commission for 
Water Cess on Hydropower Generation established under section 18 of 
this Act; 
(b) “Government” or “State Government” means the Government of 
Himachal Pradesh; 
 
(c) “hydropower” means a renewable source of energy that generates 
power by using water drawn from any water s ource flowing within the 
territory of the State; 
 
(d) “notification” means a notification published in the Rajpatra (e -
Gazette), Himachal Pradesh, and the term “notify” shall be construed  
accordingly; 
 
(e) “prescribed” means prescribed by rules made under this Act; 
 
(f) “section” means section of this Act; 
 
(g) “user” means any person, group of persons, local body, government 
department, company, corporation, society or anybody, by whichever 
                                                
1. Passed in Hindi and English by the Himachal Pradesh Vidhan Sabha. For Statement of Objects and 
Reasons see the Rajpatra  (e-Gazette), Himachal Pradesh, dated 14 th March, 2023, pp. 11051 -11052 and 
11065. 
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                                                                        THE HIMACHAL PRADESH WATER CESS ON HYDROPOWER GENERATION ACT, 2023 
 
 
name called drawing water from any source for generation of  
hydropower; 
 
(h) “water” means natural resource flowing in any river, stream, tributary, 
canal, nallah or any other natural course of water or stipulated upon the 
surface of any land like, pond, lagoon, swamp or spring; 
(i) “water cess” means the rate levied or charged for wat er drawn for 
generation of hydropower and fixed under this Act; and 
 
(j) “water source” means a river and its tributaries, stream, nallah, canal, 
spring, pond, lake, water course or any other source from which water is 
drawn to generate hydropower. 
 
CHAPTER-II 
USAGE OF WATER BY INSTALLATION OF HYDROPOWER 
GENERATING UNIT 
 
3. Installation of scheme for usage of water.—(1) No user shall draw 
water from any source for hydropower generation except in accordance with 
this Act. 
 
(2) No user shall install a scheme requiring usage of water (non - 
consumptive use) of any water source for generating hydropower except 
without being registered by the Commission in accordance with the 
provisions of this Chapter. 
 
4. Submission of sanctioned scheme for usage of water by the 
user.—Any user intending to install a scheme requiring usage of water (non - 
consumptive use) for the purpose of generation of hydropower shall submit 
detailed project report of the scheme, duly sanctioned by the Director of 
Energy or Central Electricity Au thority or any other authority  as the case 
may be accompanied with application fee for registration under the Act in the 
manner as may be prescribed. 
 
5. Acceptance of application.—After receipt of the application from a 
user, the Commission shall consider t he acceptance of the application under 
this Act. 
 
6. Information to the user. —After the application is accepted by the 
Commission under section 5, the Commission shall register the scheme and 
inform the user to,- 
(a) execute an agreement in such a form and manner  with the 
Commission as may be prescribed; and 
(b) pay water cess as fixed under Chapter-IV of this Act. 
 
7. Registration for usage of water. —No person shall install a 
scheme, requiring usage of water or in any other way use the water, unless he 
is authorised to do so by a registration certificate, issued under section 8. 
   
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                                                                        THE HIMACHAL PRADESH WATER CESS ON HYDROPOWER GENERATION ACT, 2023 
 
 
8. Grant of registration certificate. —An user intending to use water 
(non consumptive use) for generation of hydropower shall be issued a 
registration certificate after the execution of an agreement between the user 
and the Commission under this Act. 
 
9. Registered user not to do certain things.—No registered user shall 
without prior approval of the Commission,- 
 
(a) undertake any transaction to acquire by purchase or takeover or 
otherwise, the utility of any other user; or 
(b) merge his utility with the utility of any other user; or 
 
(c) at any time assign his registration or transfer his utility or any 
part thereof by sale, lease, exchange or otherwise. 
 
10. Duties, obligations and responsibilities of the registered user.—
(1) The registered user shall be liable to pay water cess for the water drawn 
for hydropower generation as per the provisions of this Act. 
 
(2) Where any user has constructed a hydropower scheme, for the 
purpose of generation of hydropower, prior to the commencement of this Act, 
such user shall, within a period of one month from the date of 
commencement of this Act, apply for registration and the Commission shall 
pass an order to register the user within a period of one month from the date 
of receipt of application in accordance with the provisions of this Act. 
 
(3) If the user as mentioned in sub -section (2) fails to apply for 
registration within time stipulated therein, the Commission shall forthwith 
impose water cess without registration on the b asis of data of water usage 
provided by the Directorate of Energy, Himachal Pradesh from the date of 
commencement of this Act alongwith suitable penalty which may extend to 
rupees ten lakh and in case of prolonged default with additional fine which 
may extend to rupees five thousand for every day. 
 
(4) Every registered user shall be under an obligation to ensure the 
safety of the life and property of inhabitants of the area by the operation of 
the scheme. 
 
(5) Every registered user shall be bound to allow the Commission or 
any other officer authorised by the Commission to have an access at any time 
to the scheme for their satisfaction with regard to compliance of the 
provisions of this Act. 
 
11. Control and safety provisions. —The Commission may, by notice 
in writing given to the user require him to cause periodic inspection carried 
out by an expert, to the satisfaction of the Commission and in accordance 
with the procedure and at such intervals, as the Commission may specify, for 
the scheme. 
 
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                                                                        THE HIMACHAL PRADESH WATER CESS ON HYDROPOWER GENERATION ACT, 2023 
 
 
CHAPTER-III 
ASSESSMENT OF WATER DRAWN BY USER 
 
12. Assessment of water drawn by user. —(1) The Commission shall 
install or cause to be installed flow measuring device as per the specifications 
approved by the Commission within the premises of scheme or at such other 
place where the Commission deems fit for measuring the water drawn for 
hydropower generation or may adopt any indirect method for assessment of 
water drawn by the user. 
   
(2) The expenditure incurred on such installation shall be payable by 
the user. 
 
13. Damaging the flow m easuring device or any fitting. —No person 
shall wilfully damage or cause to be damaged, any water measuring device or 
any of the fittings of the device. The user shall be responsible to replace the 
damaged device forthwith at his own cost failing which pen alty of rupees 
fifty thousand shall be imposed on such user. 
 
14. Fraud in respect of flow measuring devices. —No person shall 
fraudulently or dishonestly,- 
 
(a) alter the index of any flow measuring device or prevent any 
device from recording the actual quantity of water supplied; or 
   
(b) extract or draw water before it has been recorded by the 
measuring device set up for the purpose of recording the same;  
or 
 
(c) tamper the measuring device, install or use a tampered device;  
or 
 
(d) use any other device or method which interferes with accurate 
or proper registration, calibration or metering of water supplied. 
 
CHAPTER-IV 
 
WATER CESS 
 
15. Fixation of water cess. —(1) The user shall be liable to pay the 
water cess at such rates as the Government may, by notification fix in this  
behalf. 
(2) The State Government may review, increase, decrease or vary the 
rates of the water cess fixed under this section from time to time in the 
manner it deems fit. 
16. Recovery of water cess. —The Commission shall recover water 
cess as per the rates fixed by the State Government from every user whenever 
water is drawn by a user for generation of hydropower. 
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                                                                        THE HIMACHAL PRADESH WATER CESS ON HYDROPOWER GENERATION ACT, 2023 
 
 
17. Procedure for assessment.—(1) The assessment of water drawn by 
the user for hydropower generation and computation of water cess thereof, 
shall be carried out by the Commission. 
(2) The user shall pay the water cess as assessed under sub -section (1) 
within such time as may be specified by the Commission. 
(3) If any user fails to pay water cess due on him, penalty shall be 
imposed on the user as determined by  the Commission. The user has to pay 
water cess along with penalty within extended time as may be prescribed. 
 
 
CHAPTER-V 
 
STATE COMMISSION 
 
18. Establishment of the Commission. —(1) The Government may, by 
notification, establish Commission to be known as the State Commission for 
water cess on hydropower generation to exercise the powers and to discharge 
the functions under this Act: 
 
   Provided that till the Commission is established under this section, 
the Secretary (Jal Shakti Vibhag) to the Government of Himachal Pradesh 
may exercise the powers and discharge the functions of the Commission. 
 
(2) The Commission established under sub -section (1) shall be a body 
corporate by the name aforesaid, having perpetual succession and a 
common seal, with power to acquire, hold and dispose of property, 
both movable and immovable, and to contract and may, by the said 
name, sue or be sued. 
 
(3) The head office of the Commission shall be at Shimla. 
 
(4) The Commission shall consist of a Chairperson and not more than 
four members. 
 
(5) The Chairperson and members of the Commission shall be 
appointed by the State Government on the recommendations of a 
Search Committee referred to in sub-section (1) of Section 20. 
 
19. Qualifications for appointment of Chairperson and members of 
the Commission. —(1) The Chairperson shall be appointed from amongst 
persons who are either holding or have held a post not below the rank of the 
Secretary to the State Government or eminent person in public life. 
 
(2) The members of the Commission shall be persons of ability, 
integrity and standing who have relevant experience of fifteen years and 
above in the field of engineering, finance, commerce, economics, law or  
management: 
 
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                                                                        THE HIMACHAL PRADESH WATER CESS ON HYDROPOWER GENERATION ACT, 2023 
 
 
Provided that at least one member shall be from amongst the 
persons who are either holding or have  held a post not below the rank of 
Chief Engineer or equivalent and having qualification and experience in the 
field of Hydropower Engineering. 
 
(3) The Chairperson or any member of the Commission shall not hold 
any other office of the profit. 
   
(4) The Chairpers on shall be the Chief Executive Officer of the  
Commission. 
 
(5) The Commission shall have appropriate structure underneath for 
support as may be prescribed by the Government. 
 
20. Constitution of Search Committee. —(1) The Government shall, 
for the purposes of sele cting the Chairperson and members of the 
Commission, constitute a Search Committee consisting of,- 
 
(a) Chief Secretary       Chairperson; 
 
(b) Secretary (Finance) to the Government 
      of Himachal Pradesh Member; 
 
(c) Secretary (MPP and Power) to the 
      Government  of Himachal Pradesh Member; 
 
(d) Secretary (Jal Shakti) to the 
Government of Himachal Pradesh Member; and 
 
(e) Secretary (Law) to the Government 
            of Himachal Pradesh Member. 
 
(2) The Government shall, within one month from the date of 
occurrence of any vacancy  by reason of death, resignation or removal of 
the Chairperson or member and six month before the superannuation or end 
of the tenure of the Chairperson or a member, make  a reference to the Search 
Committee for filling up of the vacancy. 
 
(3) The Search Committee shall finalize the selection of Chairperson or 
the members within two months from the date on which the reference is made 
to it. 
 
(4) Before recommending any person for appointment as Chairperson 
or member, the Search Committee shall satis fy itself that such person does 
not have any financial or other interest which is likely to affect prejudicially 
his function as such Chairperson or member. 
 
 
 
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                                                                        THE HIMACHAL PRADESH WATER CESS ON HYDROPOWER GENERATION ACT, 2023 
 
 
21. Term of office and conditions of service. —(1) The Chairperson 
and other members shall hold office for a term of three years from the date on 
which they enters upon their office: 
 
Provided that no Chairperson or member shall hold office after attaining the 
age of sixty five years. 
 
(2) The salary, allowances and other terms and conditions of service of 
the Chairperson and the members shall be such as may be prescribed: 
 
Provided that the salary, allowances and other terms and conditions of service 
of the Chairperson and the members shall not be varied to their disadvantage 
after their appointment. 
 
(3) The C hairperson and members shall, before entering upon their 
office, make and subscribe to an oath of office and secrecy in such form and 
manner and before such authority as may be prescribed. 
 
(4) Notwithstanding anything contained in sub -section (1), the 
Chairperson or a member may relinquish his office by giving in writing to the 
Government a notice of not less than three months. 
 
(5) The Chairperson or any member ceasing to hold office as such  
shall,- 
 
(a) not be eligible for further appointment under the Government 
for a period of two years from the date he ceases to hold such 
office; and 
 
(b) not accept any commercial employment in the projects or 
scheme etc. relating to generation of hydropower. 
22. Removal of Chairperson or member.—(1) The Chairperson or the 
member shall cease to hold his office as such if he,- 
(a) has been adjudged as insolvent by the competent Court; or 
 
(b) has been convicted of an offence by the competent Court; or 
 
(c) has become physically or mentally incapable of acting as such; or 
 
(d) has acquired such financial or other interest as is likely to affect 
prejudicially his function in the Commission. 
 
(2) Where a question arises as to if the Chairperson or the member has 
become physically or mentally incapable of acting as such or has acquired 
such financial or other interest as is likely to affect prejudicially his function 
in the Commission, the decision in this regard shall be taken by the 
Government and shall be final. 
 
 10 
                                                                        THE HIMACHAL PRADESH WATER CESS ON HYDROPOWER GENERATION ACT, 2023 
 
 
(3) The Government may suspend the Chairperson or any member of 
the Commission if in the op inion of the Government there are just and 
sufficient reasons  to suspend the Chairperson and member and the 
proceedings for his removal have been initiated: 
 
Provided that no such order shall be passed without offering an opportunity 
of being heard against whom such order is proposed to be passed. 
 
23. Officers and other employees of the Commission. — (1) The 
Commission shall have a Secretary to exercise such powers and perform such 
duties under the control of the Chairperson, as may be prescribed. 
 
(2) The Secretary shall be appointed by the Government. 
 
(3) The number, nature and categories of other officers and employees 
required to assist the Commission, to discharge its functions, shall be such as 
may be prescribed. 
   
(4) The salaries and allowances payable to, and other terms and 
conditions of the service of the Secretary, officers and other employees shall 
be such as may be prescribed. 
 
(5) The Commission may engage the engineers and other staff of State 
Government to assess the water drawn by users and other technical  activities 
to assist the Commission to discharge its functions on such terms and 
conditions as may be prescribed. 
 
CHAPTER-VI 
 
POWERS, FUNCTIONS AND ACCOUNTS OF THE COMMISSION 
 
24. Functions of the Commission. —The Commission shall  discharge  
the following functions, namely:— 
 
(a) enforce the decisions and orders issued under the Act; 
 
(b) adjudicate upon the disputes regarding water cess; 
 
(c) ensure transparency while exercising the powers and 
discharging its functions; 
 
(d) establish a system of enforcement, monitoring and 
measurement of water drawn for hydropower generation; and 
 
(e) such other functions as may be prescribed. 
 
 
25. Powers of the Commission. —(1) The Commission for the purpose 
of making an  inquiry or initiating any proceedings under this Act, shall 
 11 
                                                                        THE HIMACHAL PRADESH WATER CESS ON HYDROPOWER GENERATION ACT, 2023 
 
 
have the same powers as are vested in a Civil Court, under the Code of Civil 
Procedure, 1908 (5 of 1908) in respect of the following matters, namely:— 
 
(a) summoning and enforcing the attendance of any witness and 
examining him on oath; 
 
(b) discovery and production of any document or other material 
object capable of being produced as evidence; 
 
(c) receiving of evidence on affidavits; 
 
(d) requisition of any public record; 
 
(e) issuing commission for examination of witnesses; 
 
(f) reviewing its decisions, directions and orders; and 
 
(g) any other matter which may be prescribed. 
 
(2) The Commission shall have the powers to pass such interim order in 
any proceeding, hearing or matter before it, as it may consider appropriate. 
 
(3) The Commission may authorize any person, as it may deem fit, to 
represent the interest of the registered users in the proceedings before it. 
 
26. Proceedings before the Commission.—All proceedings before  the 
Commission shall deemed to be judicial proceedings within the meaning of 
Sections 193, 214 and 228 of the Indian Penal Code, 1860 (45 of 1860) and 
the Commission shall deem to be a Civil Court for the purposes of Section 
195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974). 
 
27. Power of entry and seizure. —The Commission or any Gazetted 
Officer, specially authorized in this behalf by the Commission, may enter any 
building or place where the Commission has reason to believe that any 
document relating to the subject matter of the inquiry may be found, and may 
seize any such document or take extracts of copies theref rom subject to the 
provisions of the Indian Penal Code, 1860 (45 of 1860). 
 
28. Delegation of powers. —The Commission may, by general or 
special order in writing, delegate to the Chair person, any member, Secretary, 
Officer of the Commission or any other person subject to such conditions, if 
any, as may be specified in the order, such of its powers and functions under 
this Act, except the powers to adjudicate disputes under section 24 and the 
powers to make regulations under section 43 as it may deem necessary. 
 
29. Penalty for non -compliance of directions of Commission. —The 
Commission, on receiving a complaint or otherwise, is satisfied that any user 
has contravened any of the provisions of this Act or the rules or regulations or 
any direction issued by the Commissio n it may after giving such user an 
 12 
                                                                        THE HIMACHAL PRADESH WATER CESS ON HYDROPOWER GENERATION ACT, 2023 
 
 
opportunity of being heard, by order in writing, direct that, without prejudice 
to any other penalty to which he may be liable under the Act, such user shall 
pay, by way of penalty, such amount which may extend to rupees ten lakh 
and in case  of continuous default with additional fine which may extend to 
rupees five thousand for each day from the date of such order. 
 
 
30. Power to adjudicate.—(1) For the purpose of adjudicating disputes 
under this Act, the Commission shall appoint any of its members to be an 
adjudicating officer for holding an inquiry in such manner as may be 
prescribed after giving the person concerned a reasonable opportunity of 
being heard for the purpose of imposing any penalty. 
 
(2) While holding an inquiry , the adjudicating officer shall have power 
to summon and enforce the attendance of any person acquainted with the 
facts and circumstances of the case to give evidence or produce any 
document which, in the opinion of the adjudicating officer, may be useful for, 
or relevant to, the subject matter of the inquiry, and if, on such inquiry, he is 
satisfied that the person has failed to comply with any provision of this Act, 
he may impose such penalty as he thinks fit in accordance with the provisions 
of this Act. 
 
(3) Any person aggrieved by an order under sub-section (2) may, within 
thirty days of the order, prefer an appeal before the Commission: 
 
Provided that the Commission shall not pass any order against any party 
without affording an opportunity of being heard: 
 
Provided further that the member so appointed under sub -section (1) 
above shall not be a part of Bench of Commission before such appeal is filed. 
 
(4) The order passed by the Commission shall be final. 
 
31. Factors to be taken into account by adjudicating officer.—While 
adjudicating the quantum of penalty under section 29, the adjudicating officer 
shall have due regard to the following factors, namely:— 
 
(a) the amount of disproportionate gain or unfair advantage, 
wherever quantifiable, made as a result of the default; and 
 
(b)   the repetitive nature of the default. 
 
32. Penalty not to affect other liabilities. —The penalties imposed 
under this Act shall be in addition to, and not in derogation of, any other 
liability in respect of payment of compensation. 
 
33. Grants and loans by the Government. —The Government may, 
after due appropriation made by State Legislature in this behalf, make to the 
Commission grants and loans of such sums of money as the Government may 
 13 
                                                                        THE HIMACHAL PRADESH WATER CESS ON HYDROPOWER GENERATION ACT, 2023 
 
 
consider necessary. 
 
34. Establishment of fund by the Government. —(1) There shall be 
constituted a fund, to be called the Water Cess on Hydropowers Generation 
Commission Fund and the following sums shall be credited thereto,- 
(a) any grants or loans made to the Commission by the  
Government; 
(b) all fees received by the Commission under this Act; and 
 
(c) all sums received by the Commission from such other sources as 
may be notified upon by the Government. 
(2) The fund shall be applied for meeting,- 
(a) the salary, allowances and other remuneration of Chairperson, 
members, officers and other employees of the Commission; 
 
(b) the expenses incurred to discharge the functions of the 
Commission under this Act; 
 
(c) the expenses on objects and for the purposes authorised by this  
Act. 
 
(3) The Government may prescribe the manner of applying the fund for 
meeting the expenses specified in clause (b) or clause (c) of sub-section (2). 
 
35. Accounts of the Commission. —(1) The Commission shall 
maintain proper accounts and other relevant records and prepare an annual 
statement of accounts in such form and manner as may be prescribed. 
 
(2)   The annual accounts and balance sheet of the Commission shall be 
forwarded to the Government and the Government shall cause the same to be 
laid, as soon as may be after it is received, before the State Legislature. 
 
36. Annual report of the Commission. —(1) The Commission shall 
prepare, in such form and by such time as may be prescribed, an annual 
report giving a summary of its activities during the previous year and copies 
of the report shall be forwarded to the Government. 
 
(2) A copy  of the report received under sub -section (1) shall be laid, as 
soon as may be after it is received, before the State Legislature. 
 
37. Budget of the Commission. —The Commission shall prepare, in 
such form and by such time, as may be prescribed, its budget for the next 
financial year, showing the estimate receipts and expenditure of the 
Commission and forward the same to the Government. 
 
CHAPTER-VII 
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                                                                        THE HIMACHAL PRADESH WATER CESS ON HYDROPOWER GENERATION ACT, 2023 
 
 
 
MISCELLANEOUS 
 
38. Directions by the Government. —(1) To discharge its functions, 
the Commission shall be guided by such directions in the matters of policy 
involving public interest as may be given by the State Government. 
 
(2)  If any question arises as to whether any such direction relates to a 
matter of  policy involving public interest, the decision of the State 
Government thereon shall be final. 
 
39. Protection of action taken in good faith. —No suit, prosecution or 
other proceeding shall lie against any member, officer or other employee of 
the Commission or any public servant for anything which is in good faith 
done or intending to be done under this Act or the rules or regulations framed  
thereunder. 
 
40. Members, officers etc. to be public servants. —The Chairperson, 
members, officers and other employees of the Commission while acting or 
purporting to act in pursuance of an y of the provisions of this Act, shall be 
deemed to be public servants within the meaning of the Indian Penal Code, 
1860 (45 of 1860). 
 
41. Provisions of the act to be in addition to and not in derogation of 
other laws. —The provisions of the Act are in addition to and not in 
derogation of any other law for the time being in force in the State. 
 
 
42. Power to make rules. —(1) The Government may, by notification, 
make rules for carrying out the provisions of this Act. 
 
(2)  Every rule made under this section sh all be laid as soon as may be 
after it is  made, before the Legislative Assembly, while in section for a total 
period of not less than fourteen days which may be comprised in one session 
or in two or more successive sessions and if, before the expiry of th e session 
in which it is so laid or the session immediately following, the Assembly 
make any modification in the rule or decides that the rules should not be 
made, the rules shall, thereafter, have effect only in such modified form or be 
of no effect, as t he case my be, so, however, that any such modification or 
annulment shall be without prejudice to the validity of anything previously 
done under that rule. 
 
43. Powers of Commission to make regulations. —(1) The 
Commission may, with the prior approval of the Government, make 
regulations consistent with the Act and the rules made thereunder generally to 
carry out the provisions of this Act. 
 
(2) All regulations made by the Commission under the Act shall be 
subject to the condition of previous publication. 
 15 
                                                                        THE HIMACHAL PRADESH WATER CESS ON HYDROPOWER GENERATION ACT, 2023 
 
 
 
(3) Every regulation made by the Commission shall be laid, as soon as 
may be after it is made, before the State Legislative Assembly. 
 
44. Power to remove difficulties.—(1) If any difficulty arises in giving 
effect to the provisions of this Act, the Government may, by ord er published 
in the Rajpatra (e -Gazette), Himachal Pradesh, make such provisions not 
inconsistent with the provisions of the Act, as, may appear to be necessary for 
removing the difficulties: 
 
Provided that no order shall be made under this section after the expiry of 
two years from the date of commencement of this Act. 
 
(2) Every order made under this section shall be laid, as soon as may be 
after it is made, before the State Legislative Assembly. 
 
45. Overriding effect.—The provisions of this Act shall have an effect 
notwithstanding anything inconsistant contained in any other State law for the 
time being in force. 
 
46. Repeal and savings. —(1) The Himachal Pradesh Water Cess 
Hydropower Generation Ordinance, 2023 (H.P. Ordinance No. 2 of 2023) is 
hereby repealed. 
 
(2) Notwithstanding such repeal any action taken or anything done under 
the Ordinance so repealed, shall be deemed to have been done or taken under 
the corresponding provisions of this Act. 
 
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