Himachal Pradesh Triumphs: Supreme Court Enforces Royalty Hike on JSW Energy

Himachal Pradesh Chief Minister Sukhvinder Singh Sukku celebrated a landmark Supreme Court ruling mandating that JSW Energy pay an 18% royalty for the Karcham-Wangtu hydroelectric project. This decision ensures that the state will now receive an additional income of approximately Rs 150 crore annually, directed towards public welfare. This resolution aligns with past agreements that promised the state an increased share after the 12-year mark in project operations, a claim recently disputed.

The Supreme Court verdict invalidates a May 2024 Himachal Pradesh High Court order that allowed the company to continue paying a 12% royalty. The original agreement outlined a royalty structure increasing from 12% to 18% after 12 years, reflecting a longstanding commitment to maximizing state revenues from natural resources. The Sukku administration's vigorous legal advocacy, supported by law experts including Kapil Sibal and Prag Tripathi, proved pivotal in securing this outcome.

This ruling not only boosts state finances but is also indicative of the government's broader efforts to reclaim control over public assets. In a related move, Himachal Pradesh regained ownership of the Hotel Wild Flower Hall following another successful court decision, which had involved a protracted legal battle over management rights since 2002. These victories signal a robust stance by the current administration in championing the rightful claims of the state and its people.

(With inputs from agencies.)