New land revenue regime to come into effect from January 1, 2026
Sourabh Sood
Shimla:
In a major policy move, the Himachal Pradesh government has decided to levy 2% land revenue on all hydroelectric power projects in the state, calculated on the notified market value of the land they occupy. The new land revenue regime will come into effect from January 1, 2026.
The Revenue Department issued the notification after examining a special assessment report submitted by the Energy Department. According to government estimates, this decision could generate up to Rs 2,000 crore annually from 188 operational and under-construction power projects.
Earlier, the state had imposed “water cess” on hydropower projects, but the matter is currently pending in the Himachal Pradesh High Court. The government has now created a fresh revenue route through land assessment to avoid legal hurdles.
Key points of the new policy include:
• A special assessment of land used by each hydropower project, based on its current market value.
• Annual payment of 2% of the assessed market value as land revenue.
• The rule will apply to all projects, irrespective of ownership or capacity.
Officials say the decision will significantly strengthen the state’s financial base and ensure that power producers contribute fairly for land usage.
