(Legislative Department)

New Delhi , the 17th March, 2003  

The following Act of Parliament received the assent of the President on the 13th March, 2003 , and is hereby published for general information:-


No.19 OF 2003

  [ 13th March, 2003 ]

  An Act further to amend the Water(Prevention and Control of Pollution) Cess Act, 1977.

  BE it enacted by parliament in the Fifty-fourth Year of the Republic of India as follows:-

  1.         Short Title and Commencement

  (1)  This Act may be called the Water(Prevention and Control of Pollution) Cess   (Amendment) Act, 2003.

 (2)  It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.  

2.         Amendment of Section 2


In the Water (Prevention and Control of Pollution) Cess Act, 1977.(hereinafter referred to as the principal Act), in section 2, for clause(C), the following clause shall be  substituted, namely:-

'(C) "industry" includes any operation or process, or treatment and disposal system, which consumes water or gives rise to sewage effluent or trade effluent, but does not include any hydel power unit;'.

3.         Substitution of Certain Expression

In the principal Act, for the words "specified industry", wherever they occur, the word "industry" shall be substituted.

4.         Substitution of New Section for Section 16

For section 16 of the principal Act, the following section shall be substituted, namely:-

Power of Central Government to Exempt the Levy of Water Cess

"16.(1) Notwithstanding anything contained in section 3, the Central Government may, by notification in the Official Gazette, exempt any industry, consuming water below the quantity specified in the notification, from the levy of water cess.

(2)       In exempting an industry under sub-section (1), the Central Government shall take into consideration

(a)               the nature of raw material used;


(b)               the nature of manufacturing process employed;


(c)               the nature of effluent generated;


(d)               the source of water extraction;


(e)               the nature of effluent receiving bodies; and


(f)           the production data, including water consumption per unit production, in the industry and the location of the industry."

  5.                  Omission of Schedule I

  Schedule I to the principal Act shall be omitted.

  6.         Substitution of New Schedule for Schedule II

  For Schedule II to the principal Act, the following Schedule shall be substituted , namely:-



(see section 3)


Purpose for which water is consumed

Maximum rate under sub-section (2)  of section 3

Maximum rate under  Sub-section (2A) of Section 3

1.      Industrial cooling, spraying    in mine pits or boiler feeds


2.      Domestic purpose



3.      Processing whereby water gets polluted and the pollutants are

a)     easily biodegradable ; or

b)     non toxic; or

c)      both non toxic and easily bio degradable.


4. Processing whereby water gets polluted  and the pollutants are

a)  not easily biodegradable; or

b)     toxic; or

c)      both toxic and not easily biodegradable.

Five paise

per kilolitre


Two paise

per kilolitre


Ten paise

per kilolitre







Fifteen paise

per kilolitre



Ten  paise

Per kilolitre.


Three paise

per kilolitre.


Twenty paise

per kilolitre.







Thirty paise

per kilolitre."



Secy to the Govt. of India