Payment for use of eco-services like water has now become a reality in Himachal. The upcoming multi-purpose Renuka Dam, that will quench the thirst of millions in Delhi and produce 40 mega watt electricity for Himachal, is the first project in the state where use of water by the beneficiaries will attract a new kind of cost. This cost, Payment of Eco-System Services (PES), will be used for conservation of the natural resources in catchment areas. Officials say the Catchment Area Treatment Plan for Renuka Dam is estimated at Rs 75 crore. Of this, 10 per cent will be taken as PES, and spent on sustaining the livelihood of people living in catchment areas, so that the source of water is not disturbed. This fund can also be seen as compensation to the people of these areas, who may have to sacrifice development for conservation of natural resources. In order to determine a value for the exploitation of its renewable energy sources for development, Himachal had set up the country