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Himachal Pradesh has announced a land revenue cess on hydropower projects starting January 1, 2026, following amendments to the Land Revenue Act. This decision aims to address the state's financial challenges, which have intensified due to a significant loss in revenue grants.

The new cess has faced opposition from Punjab, which claims it imposes a financial burden of approximately Rs 500 crore. The state is also considering a separate electricity cess to generate additional funds. The meeting of the Himachal cabinet will further discuss the implications of these financial measures.