WATER CESS
ON INDUSTRY TO INCREASE THREE TIMES
The Lok Sabha today
passed a Bill that proposed a three fold increase in water cess
to be paid by all categories of industries. The Water (Prevention
& Control of Pollution) Cess (Amendment) Bill unanimously
approved by the House seeks to augment the resources of central
and state pollution control boards besides promoting economy in
use of water by industrial units. While moving the Bill for consideration
of the Lok Sabha, the Environment & Forests Minister, Shri
T.R. Baalu said the water cess rates fixed in 1991 are low and
have not been revised so far. He further said the present rates
have not proved to be a sufficient deterrent to check excessive
use of water by the industrial units. There is also a need to
increase the resource base of pollution control boards through
their share in increased water cess rates, the Minister observed.
Stating that the
average per capita fresh water availability in the country has
reduced from 5177 cu.metres in 1951 to about 1820 cu.metres in
2001, Shri Baalu said there was an imperative need to increase
water use efficiency through effective economic instruments like
water cess. He said the water cess Amendment Bill is in tune with
the Government’s Policy Statement on Abatement of Pollution which
prescribes adoption of economic instruments for pollution control
and conservation of natural resources.
Under the Provisions
of the Amendment Bill, levy and collection of cess will be extended
to all industries instead of the 16 categories of industries at
present. The cess for domestic use of water will remain unaffected.
As per the recommendations of the Parliamentary Standing Committee,
hydel power plants will be exempted from water cess. An innovative
feature of the Bill is the provision to exempt industries consuming
water below the specified quantities from water cess. The new
rates will indicate the maximum permissible level and the actual
rates will be notified by the Ministry of Environment & Forests
from time to time.
The proposed schedule
of water cess is as follows:
_____________________________________________________________________
Purpose for which
water is Maximum rate for water Maximum rate for water
Consumed use while
following the use and in case of
Pollution control
norms violating norms under Water Act
_____________________________________________________________________
Industrial cooling,
spraying Five paise per kilolitre Ten paise per kilolitre
In mine pits or boiler
feeds
Domestic purpose
Two paise per kilolitre Three paise per kilolitre
Processing whereby
water Ten paise per kilolitre Twenty paise per kilolitre
Gets polluted and
the pollutants
Are-
i)easily biodegradable,
or
ii)non-toxic; or
iii)both non-toxic
and easily
biodegradable
Processing whereby
water gets Fifteen paise per kilolitre Thirty paise per kilolitre
Polluted and the
pollutants are-
i)not easily biodegradable;
or
ii) toxic; or
iii)both toxic and
not easily
biodegradable
Following the last
revision of water cess rates in 1991 the revenue has increased
from Rs. 8.13 crore in 1991-92 to Rs. 63.78 crore in 1999-2000.
The 16 categories
of industries currently covered under Water Cess Act are: Ferrous
and non-ferrous metallurgical industry, mining, ore processing,
petroleum, petrochemicals, chemicals, ceramics, cement, textile,
paper, fertilizer, coal, power(thermal, diesel and hydel), engineering
and processing of animal or vegitable products.
