Supreme Court Boosts Himachal's Royalty Revenues from JSW Energy

The Supreme Court has issued a landmark ruling requiring JSW Energy to increase royalty payments from 12% to 18% for its Karcham-Wangtoo hydroelectric project to the Himachal Pradesh government, according to a spokesperson.

Initially developed by Jaypee Group and acquired by JSW in 2015, the project lies on the Sutlej River and boasts a capacity of 1,045 MW. With this decision, the state expects additional revenue of about Rs 150 crore each year.

This ruling reverses a May 2024 Himachal Pradesh High Court decision and aligns with state policy, mandating increased royalties as projects age. The project initially agreed to pay 12% for the first 12 years, escalating to 18% for the next 18 years, and 30% thereafter.

(With inputs from agencies.)