Sunil Chadha
Shimla:
In a landmark judgment, the Supreme Court has ruled in favour of the Himachal Pradesh government in the long-running Karcham-Wangtu royalty dispute, ordering JSW Energy to increase royalty payments from 12% to 18% for the 1,045 MW hydropower project.
The decision is expected to fetch the state an additional Rs 250 crore annually and is being hailed as the first major legal victory for the Sukhvinder Singh Sukhu government’s resource mobilisation strategy.
Chief Minister Sukhu called the verdict a “historic moment” for Himachal, emphasising that the state will now aggressively pursue pending royalty and ownership claims in power projects run by BBMB (Bhakra Beas Management Board), SJVNL and other central or private operators using Himachal’s natural resources.
Karcham verdict turning point for Himachal’s hydropower strategy
The Supreme Court’s decision overturns a May 2024 Himachal Pradesh High Court order that had upheld JSW Energy’s refusal to pay beyond 12% royalty. The original 1999 agreement between the state and the company fixed a 12% royalty for the first 12 years of operation, rising to 18% thereafter. The plant began generating power in September 2011, completing its 12-year mark in 2023. However, the company declined to increase the royalty, leading to a legal battle.
Argued by senior advocates Kapil Sibal and Prag Tripathi, with Himachal Advocate General Anoop Rattan and Additional AG Vaibhav Srivastava, the case was presented as a critical test of the state’s ownership over its hydropower potential. The top court’s ruling is expected to open the door for similar claims on other projects that have completed their initial royalty tenure.
A government spokesperson confirmed that the judgment could generate an additional Rs 150 crore from Karcham-Wangtu alone and over Rs 250 crore from other qualifying projects annually.
Sukhu govt shifts gears: BBMB, SJVNL in crosshairs
Riding high on the Supreme Court victory, CM Sukhu has directed state legal teams to fast-track cases involving royalty and ownership rights in centrally administered hydropower projects. These include units operated by the BBMB, SJVNL and the NTPC.
At a recent press conference, Sukhu criticised the Central government and neighbouring states like Punjab, Haryana and Rajasthan for denying Himachal its rightful 12% free power royalty from BBMB projects built on state land. He emphasised that the state’s policy clearly demands that centrally built power infrastructure on Himachal’s land must revert to the state after 40 years, a clause long ignored by Delhi and neighbouring states.
“We are not mere spectators. If the rivers and the land are ours, so should be the benefits,” Sukhu said. He added that Himachal’s legal fight is not just about revenue but about restoring the dignity and rights of its people.
Displacement, dues and the road ahead
The Chief Minister also highlighted the unresolved plight of thousands displaced by BBMB projects like Bhakra and Pong, particularly from Bilaspur district. Many of these families are still awaiting land compensation in Rajasthan, decades after displacement. Sukhu pledged to make their rehabilitation a non-negotiable part of future discussions with the Centre and neighbouring states.
The state has also refused to greenlight the Kishau Dam project until Rs 1,200 crore in arrears from BBMB operations are settled. “Why should Himachal provide water to Delhi or Haryana when we haven’t received our dues?” Sukhu questioned.
Legal and political preparations are also underway to assert state rights over the Shanan hydropower project, which is due for transfer to Himachal after its 99-year lease ends.
“This legal win marks a bold new phase in Himachal Pradesh’s resource reclamation movement. With the Karcham-Wangtu judgment in hand, the Sukhu government now has a powerful legal precedent and a growing political mandate to extract full value from the state’s rich hydropower base,” said a Congress leader.
