Wapda, Irsa lock horns over water cess bill

ISLAMABAD - Despite the approval of the Council of Common Interest (CCI), Wapda and Irsa have ostensibly locked horns over water cess bill as the former has refused to pay this surcharge till this effect, sources said on Thursday. Wapda and Irsa are at loggerheads over the collection of water cess bill as Water and Power Development Authority (Wapda) has seemingly refused to pay this tax/ surcharge earlier decided by the CCI in June this year after taking the request of the Indus River System Authority (Irsa) on board, the sources privy to the development told. Sources further said that controversy got its roots as Wapda refused to share details of hydro electricity units generated through hydel power and seemingly communicated Irsa to get approval from National Electric Power Regulatory Authority (Nepra) prior asking to it for details of power units as tariff is being approved from the Nepra before passing on it to the end consumers. They were of the view that Wapda could not refuse to pay water cess bill on generation of hydroelectricity with accordance to the prescribed laws and regulations, which was earlier imposed by the CCI and Irsa for the first time in 20 years of its existence has been going to collect it to meet is expenditures as it is facing cash flow problems leading to difficulties in paying salaries to its staff. Irsa was to collect this quarterly basis water cess bill of passed July, August and September, 2011, the sources said. It is testimony of the fact that under a recent decision of the Council of Common Interests (CCI), the water regulator was authorised to send water cess bills to the provinces on 6-month basis and to Wapda and Chashma nuclear project on a quarterly basis. The decision was taken at the request of Irsa, which has been facing cash flow problems resulting difficulties on its part in paying salary to its staff. Additionally, it was also estimated that Irsa would expected to earn about Rs180 million a year on account of water cess. The provinces utilise about 114 million-acre feet of water each year and the tax may yield more than Rs30 million a year. Likewise, Wapda produces about 24,000Gwh (gigawatt hour) a year. Official sources in Power Ministry was hopeful about an agreeable solution between both while confirming that Irsa had forwarded this issue to the Water and Power Ministry for an amicable solution. It was also learnt that Irsa had already sent bills of Rs18 million to the provinces for using irrigation water during six months of recently-concluded Kharif season, sources informed, adding, that Irsa had sent a bill of Rs10.3 million to Punjab, Rs7 million to Sindh, Rs558,000 to Balochistan and Rs287,000 to Khyber Pakhtunkhwa for the Kharif season which concluded on October 1.

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