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The Himachal Pradesh government has achieved a significant legal victory at the Supreme Court, securing an increased royalty of 18 percent from the 1045 MW Karcham-Wangtu hydroelectric project, up from the previous 12 percent. This ruling, overturning a past High Court decision, is expected to generate an additional annual income of approximately INR 150 crore for the state. Beyond this specific project, the verdict sets a crucial precedent for other hydropower ventures that have completed their initial operational period, potentially adding over INR 250 crore annually to the state's treasury, affirming Himachal Pradesh's rights over its natural resources.
The Himachal Pradesh government has secured a major legal triumph in the Supreme Court concerning royalty payments from the Karcham-Wangtu hydroelectric project. The apex court today delivered a landmark decision in favor of the state, mandating JSW Energy Company to pay 18 percent royalty to the state instead of the previous 12 percent for the 1045 MW capacity project. Advertisement
A spokesperson for the state government indicated that this favorable ruling is expected to bring an annual additional income of approximately INR 150 crore from the Karcham-Wangtu project alone. Furthermore, the Supreme Court's decision sets a significant precedent for other hydropower projects that have completed their initial twelve-year operational period. The state government anticipates that this broader application could potentially add more than INR 250 crore per year to its treasury, considerably strengthening the state's financial resources.
The dispute originated from an agreement signed between the state government and the company in 1999. This agreement stipulated a royalty rate of 12 percent for the first 12 years of the project's operation, increasing to 18 percent for the subsequent 28 years. After the project began generating power in September 2011, JSW Energy paid the 12 percent royalty for the initial twelve-year period. However, the company declined to pay the additional six percent royalty from September 2023, leading to the legal contention.
The matter was initially taken to the Himachal Pradesh High Court, which ruled in favor of the company in May of last year. Nevertheless, the state government challenged this High Court decision in the Supreme Court. A spokesperson for the state government noted that Chief Minister Sukhvinder Singh Sukhu personally prioritized this issue, making determined efforts to ensure the state's rights over its abundant natural resources were firmly asserted.
Acting on the Chief Minister's instructions, the state government presented its case robustly, enlisting the assistance of leading legal experts. Ultimately, the Supreme Court ruled in the state government's favor. Legal luminaries including senior advocates Kapil Sibal and Prag Tripathi, alongside Advocate General Anoop Kumar Ratan and Additional Advocate General Baibhav Srivastava, represented the state government's interests before the highest court. This verdict is expected to not only increase the state's income but also provide the people of Himachal with tangible benefits from their own resources, underscoring the government's commitment to protecting state interests. Himachal Pradesh heavily relies on hydropower as a key revenue source and driver of economic development.
This recent victory is not the only legal success for the current state government under Chief Minister Sukhu. Previously, the state government also secured a favorable court decision in the long-running Hotel Wild Flower Hall case, which had been embroiled in a legal dispute since 2002. This particular case involved a dispute over ownership and management rights between the Himachal Pradesh government and a private hotel group.
Following the court's ruling, this heritage property has now returned to the control of the state government, promising future revenue benefits from this historic asset. These legal wins collectively demonstrate the present administration's strong resolve in advocating effectively for the state's interests and reclaiming its rightful claims.
Source- ANI
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