Himachal proposes a new milk and environment cess on industrial power consumers
The Himachal Pradesh government has introduced an amendment to the state’s Electricity Duty Act, proposing two new cesses—milk and environment—targeting industrial power consumers. The amendment bill, tabled in the state assembly on Monday, is designed to support the dairy industry and encourage the use of renewable energy.
Under the proposal, a milk cess of ₹0.10 per unit will be charged on industrial electricity consumption, excluding consumers with zero electricity bills. The revenue generated will be directed towards enhancing milk production, procurement, and improving the welfare of milk producers in the state.
In addition, an environment cess will also be levied on power consumers, ranging from ₹0.02 per unit for small industrial users to ₹0.10 per unit for larger industrial and commercial consumers. The objective of this cess is to promote renewable energy and protect the environment.
This decision follows a recent High Court ruling that prohibited the government from imposing a water cess on power generation. The introduction of the milk and environment cesses is expected to generate significant revenue, which will be used to strengthen the dairy sector and support sustainable energy initiatives in Himachal Pradesh.
