In a major legal victory, the Himachal Pradesh government will now receive 18% royalty from the 1045 MW Karcham-Wangtu hydroelectric project, following a landmark ruling by the Supreme Court of India. The decision overturns an earlier Himachal Pradesh High Court judgment that had capped the royalty at 12%.
This verdict mandates JSW Energy Ltd. to pay the originally agreed-upon royalty—12% for the first 12 years and 18% thereafter—as per the 1999 agreement. Since the project became operational in September 2011, the company had been paying only 12% and refused to increase the rate after 2023.
A government spokesperson confirmed that this ruling would bring an additional ₹150 crore annually, and over ₹250 crore in total yearly revenues once similar provisions apply to other projects crossing the 12-year mark.
The spokesperson credited CM Sukhu for personally prioritizing the case and ensuring the state’s rights over its natural resources were upheld. Senior advocates Kapil Sibal, Prag Tripathi, along with Advocate General Anoop Kumar Ratan and Additional Advocate General Baibhav Srivastava, represented the state in the Supreme Court.
The court’s decision is being seen as a milestone for resource sovereignty in Himachal Pradesh. It also demonstrates the current administration’s firm stance on protecting the economic interests of the state.
This isn’t the first major legal victory for the Sukhu-led government. Recently, the state also regained ownership of Hotel Wildflower Hall, ending a two-decade-long legal dispute with a private hospitality group. The heritage property is now back under state control, promising additional revenue and tourism potential.
