According to a notification issued by the Power Department on May 8, 2026, the move is aimed at generating additional revenue for the cash-strapped state government.
The newly added categories include business houses, private offices, private hospitals, petrol pumps, hotels and motels, private nursing homes, private research institutions, private coaching institutes, shopping malls and multiplexes.
“In exercise of the powers conferred under Section 3-B of the Himachal Pradesh Electricity (Duty) Act, 2009, these categories have been brought under the ambit of the cess in public interest with immediate effect,” the notification issued by Rakesh Kanwar stated.
The notification further specified that the Himachal Pradesh State Electricity Board will collect the cess from the newly notified categories.
The decision comes amid mounting financial pressure on the state following the discontinuation of nearly Rs 8,000 crore in annual Revenue Deficit Grant assistance.
The Himachal Pradesh Vidhan Sabha had passed the Himachal Pradesh Electricity (Duty) Amendment Bill, 2024, on September 11, 2024, paving the way for the imposition of environment and milk cess on electricity consumption by industries and domestic consumers, except those receiving zero bills.
The state government is already levying a milk cess of Rs 10 per liquor bottle. Under the earlier legislation, environmental cess rates ranging from 2 paise to Rs 6 had also been imposed on industrial units, stone crushers and electric vehicle charging.
Chief Minister Sukhvinder Singh Sukhu had defended the move in the Vidhan Sabha, saying the cess would help strengthen milk producers, support farmers and promote tourism while ensuring environmental protection.
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