Sukhu Government Scores Major Victory in Supreme Court — State to Gain ₹250 Crore Annually
Shimla, July 16:
In a significant legal win, the Himachal Pradesh government under Chief Minister Thakur Sukhvinder Singh Sukhu has secured a favourable verdict from the Supreme Court regarding royalty payments from the Karcham Wangtoo hydroelectric project. The apex court ruled that JSW Energy must now pay 18% royalty to the state, up from the current 12%, for the 1,045 MW project.
According to a government spokesperson, this landmark ruling will result in an additional ₹150 crore in annual revenue from this project alone. Moreover, the decision sets a precedent for other hydro projects that have completed 12 years of operation, potentially bringing in over ₹250 crore in extra revenue annually to the state exchequer.
The spokesperson added that Chief Minister Sukhu took personal interest in the matter, determined to uphold Himachal Pradesh’s rights over its natural resources. “This judgment not only boosts the state’s income but also ensures that the people of Himachal benefit from their own resources,” he said.
The Supreme Court’s ruling overturns a May 2024 decision by the Himachal Pradesh High Court, which had allowed the company to continue paying only 12% royalty. As per the original 1999 agreement between the state government and JSW Energy, a 12% royalty was to be paid for the first 12 years of operation, followed by 18% for the remaining 28 years. The project began operations in September 2011, and while the company paid 12% till September 2023, it refused to increase the royalty afterward, leading to a legal dispute.
After losing in the High Court, the state government challenged the decision in the Supreme Court. On the Chief Minister’s instructions, the case was presented robustly with the help of top legal experts. Senior advocate Kapil Sibal, Pragh Tripathi, Advocate General Anup Kumar Rattan, and Additional Advocate General Vaibhav Srivastava represented the state in court.
The spokesperson also highlighted that the Sukhu government continues to advocate strongly for the state’s interests. This ruling, he said, is another major milestone in reclaiming the state’s rights. He further noted that the government had previously succeeded in securing a favourable court verdict in the long-pending Wildflower Hall case, regaining control of the heritage property after a prolonged legal battle over ownership and management rights with a private hotel group — a move that is also expected to generate future revenue for the state.
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