Himachal govt to get 18 pc royalty from Karcham-Wangtu project, state to get additional income of Rs 250 cr

Shimla (Himachal Pradesh) [India], July 17 (ANI): The Himachal Pradesh government has achieved an important legal success from the Supreme Court. The Court has given a historic decision in favour of the state government regarding royalty from the Karcham-Wangtu hydroelectric project.
Now, JSW Energy Company will have to pay 18 per cent royalty to the state instead of 12 per cent from this 1045 MW capacity project, a press release said.
A spokesperson for the state government stated that with this decision, the government would receive an annual additional income of approximately Rs 150 crore. Apart from this, the decision of the Supreme Court would also be a milestone for other projects that have completed twelve years, and the state government hopes that this decision would bring an income of more than Rs 250 crore per year to the treasury.
He stated that Chief Minister Sukhvinder Singh Sukhu took this issue personally and made determined efforts to ensure the state's rights over its natural resources. This decision would not only increase the state's income, but also provide the people of Himachal with the real benefit of their resources.
This decision of the Supreme Court annuls the order of the Himachal Pradesh High Court in May 2024, which had allowed the company to pay only a 12 per cent royalty. According to the agreement between the state government and the company in the year 1999, royalty was fixed as 12 per cent for the first 12 years of the project and then 18 per cent for the remaining 28 years. After the project started operating in September 2011, the company paid a 12 per cent royalty for 12 years, but refused to pay an additional 6 per cent royalty from September 2023.
The dispute reached the Himachal Pradesh High Court, and the decision was given in favour of the company. The state government challenged the High Court's decision in the Supreme Court.
On the Chief Minister's instructions, the government presented the case strongly, with the assistance of the country's leading legal experts, and ultimately, the court ruled in favour of the state government. In this case, senior advocates Kapil Sibal, Prag Tripathi, Advocate General Anoop Kumar Ratan and Additional Advocate General Baibhav Srivastava appeared in the Supreme Court on behalf of the state government.
The spokesperson also stated that under the leadership of Chief Minister Sukhu, the state government has been continuously advocating effectively for the state's interests, and this decision is a significant step in that direction, which is contributing to Himachal Pradesh's success in regaining its rights.
Even before this, the present state government, while demonstrating its strong will, got the court to decide in its favour the Hotel Wild Flower Hall case, which had been embroiled in a legal dispute since 2002. In this case, a dispute was going on between the Himachal Pradesh government and a private hotel group over ownership and management rights. After the court's decision, this property has now again come under the control of the state government, as a result of which the government will get revenue benefits from this heritage property in future. (ANI)