Deputy Chief Whip Kewal Singh hails ruling as a major legal milestone for the state
S Gopal Puri
Himachal Pradesh has achieved a significant legal victory in the Supreme Court regarding royalty entitlements from the Karcham-Wangtoo hydroelectric project. The court ruled in favor of the state government, mandating JSW Energy Ltd. to provide 18% royalty on the 1,045 MW project, instead of the earlier 12%.
This landmark decision is expected to bring an additional ₹150 crore in annual revenue to the state exchequer. Furthermore, the judgment sets a precedent for other hydroelectric projects that have completed their initial 12-year agreement period, potentially adding over ₹250 crore annually to the state’s treasury.
Deputy Chief Whip Kewal Singh stated that Chief Minister Thakur Sukhvinder Singh Sukhu took personal initiative to safeguard Himachal’s rights over its natural resources, reinforcing the state’s claim and ensuring equitable benefit for its citizens. The ruling overturns a May 2024 decision by the Himachal Pradesh High Court, which had upheld the 12% royalty cap.
Under the original 1999 agreement, royalties were set at 12% for the first 12 years and 18% thereafter for the remaining 28 years. The government, under CM Sukhu’s leadership, enlisted top legal experts to present the case, resulting in a favorable verdict.
Singh further highlighted the government’s ongoing efforts to reclaim state-owned assets and enforce its rights over energy projects. He referenced the Wildflower Hall case, where after decades of litigation, ownership was restored to the state.
The Deputy Chief Whip emphasized the need for central public sector undertakings to align with Himachal’s energy policies. If Satluj Jal Vidyut Nigam Ltd fails to comply, the government is prepared to take over key energy projects like the 210 MW Luhri Stage-I, 382 MW Sunni project, and 66 MW Dhaulasidh project to ensure fair participation of the state’s citizens in water resource management.
Singh also urged the central government to assist in transferring the 110 MW Shanan project from Punjab to Himachal, noting the project area never belonged to Punjab and does not fall under the Punjab Reorganization Act of 1966.
In a separate appeal, the Chief Minister requested the central government to direct the Bhakra Beas Management Board (BBMB) to release 13,066 million units of pending power arrears to Himachal for the period from November 1996 to October 2011. Despite Supreme Court rulings in favor of the state, BBMB has withheld ₹4,500 crore in dues.
The government reiterated its commitment to making Himachal Pradesh self-reliant by 2027 and among the richest Indian states by 2032. With strategic governance and assertive policy enforcement, Singh cited a rise in mining revenue from ₹240 crore under the previous administration to ₹314 crore last fiscal, with expectations of reaching ₹360 crore this year.
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