Dehradun: Although Uttarakhand has completed eleven years of its formation, the governments which ruled the state in these years have yet to recognize the potential of its water resources which could have been backbone of its economy.

Since the difficult topographic conditions and mountainous terrain cannot support industrialization or agriculture as the main source of income, the state has decided to tap its water resource to churn out handsome benefits.

Like the state of Jammu and Kashmir, the Uttarakhand government has levied taxes on the water used in power generation. The Cabinet note clearly stated that “maximum area of Uttarakhand comprises mountains and hills which provide rare possibilities of setting up industries or practicing agriculture. Therefore, since the state is the source of major rivers, water can be the basis of Uttarakhand’s economic prosperity.”

Late than never Uttarakhand government has now levied taxes on water to be utilized in generation of electricity.

Of the water used in producing 3500 megawatts of electricity, the state can earn Rs 1700 crore per annum. However, in a tripartite agreement of the state with Uttar Pradesh and private companies, the government has decided not to charge any tax on water used in Vishnuprayag and Srinagar hydro power projects.