Government earns Rs 120 crore through water cess

Hyderabad, September 26: If the increasing number of farmers paying water cess on time is any indication, the agriculture sector is booming in the state and one can expect good returns during the current financial year also. Apart from realising the water cess of Rs 120 crore till date for the current financial year, the irrigation officials succeeded in collecting arrears of Rs 370 crore which were pending for the past few years.

There is an increase in the number of farmers paying the water cess during the last few years. Irrigation department officials said farmers failed to pay water cess in the past due to bad crop. As a result, the government had to spend huge amounts towards operation and maintenance of irrigation canals under various projects to take up emergency works. The state government has funded Rs 120 crore in 2007 and Rs 100 crore in 2008 to meet operation and maintenance costs of irrigation canals.

However, the government did not spend any amount in the last two years as the water cess collected from farmers was adequate to meet the maintenance costs of irrigation canals.

Against water cess of Rs 65 crore collected from farmers in 2007, the irrigation department realised Rs 84 crore in 2008 and Rs 120 crore in 2009. The officials have already received Rs 120 crore for the current fiscal year apart from Rs 370 crore arrears.

“There is an increasing awareness among farmers on payment of water cess. Further, the state witnessed bumper harvest in the last two years,” an official in the irrigation department said.

With the irrigation department realising Rs 490 crore this fiscal year, the government need not fund any amount towards operation and maintenance of irrigation canals.

The officials said that the government could take up only emergency works to repair breaches and other damages to canals during floods and other calamities.

With all pending arrears collected from the farmers, the officials are now planning to take up a complete overhaul of irrigation canals under various projects in the next few months.

–Agencies