In a decision which could have far-reaching political implications, State Chief Minister Manohar Joshi said the exercise would mop up Rs 80 crore in additional revenue. The new rates, formulated on the basis of the recommendations of the Dr Swaminathan Committee set up to suggest measures to augment water resources in the State, will be implemented with retrospective effect from July 1, 1998. The last revision was effected in 1994, when the cess was fixed at Rs 1,750 per hectare.

Farmers using drip irrigation and those growing foodgrains have been exempted from the hike to encourage them to switch from flood to drip irrigation, which is subsidised by the State, Joshi said. Irrigated water used for drinking purposes has also been exempted.

About 12 lakh hectares are underirrigation in the State, of which sugarcane and banana which are perennial crops are grown on 1.8 lakh hectares. The hike is therefore aimed at farmers growing round-the-year cash crops.

The chief minister said that of the total irrigated water used, about 3 per cent is channelled for industrial purposes. The new rates for industrial usage would be hiked from Rs 3 to Rs 9 for every 10,000 liters irrigated from lakes and Rs 6 to Rs 18 per 10,000 liters irrigated from other sources.

Sources say the Irrigation Department had suggested that the cess be increased from Rs 1,750 to Rs 3,200 per hectare. However, the Cabinet settled for Rs 2,650.

Joshi said arrears on water cess amount to at least Rs 200 crore, with recovery amounting to about 60 per cent annually.