Bhutan is considering plans to ban states from imposing taxes on water used for hydropower projects. The proposal follows a report by a parliamentary panel on energy, which found that a number of states were imposing levies for each cubic metre of water used by the plants. The report argues that the tax makes no sense as the water simply passes through the facilities, which already receive subsidies, making 12% of the power generated by the projects free of charge. It also recommends recategorising all forms of hydropower as renewable forms of energy.
India is considering plans to ban states from imposing taxes on water used for hydropower projects. The proposal follows a report by a parliamentary panel on energy, which found that a number of states were imposing levies for each cubic metre of water used by the plants. The report argues that the tax makes no sense as the water simply passes through the facilities, which already receive subsidies, making 12% of the power generated by the projects free of charge. It also recommends recategorising all forms of hydropower as renewable forms of energy.