Himaal Pradesh: “There will be 18% of the royal family now,” CM Sukhvinder Sukhu said on hydroelectric project
Himaal Pradesh Chief Minister Sukhvinder Singh Sukku welcomed the Supreme Court’s ruling that enforced 18% royalties in JSW Energy related to Karcham-Wangtu hydropower project
“The respected Supreme Court has ruled on the people of Himaal on hydropower projects. Now the state will receive 18% royalties. We will neither let the people’s property be robbed nor allowed to be plundered.
A spokesman for the state government said that through this decision, the government will receive approximately Rs 150 crore in annual revenue. Apart from that, the Supreme Court’s ruling will also be a milestone in completing other projects in the twelve years, with the state government hoping that the decision will earn more than Rs 25 billion a year.
A state government spokesman further said that CM personally handled the issue and identified efforts to ensure the state’s rights to its natural resources. This decision will not only increase the country’s income, but also bring real resource benefits to the Himaal people.
The Supreme Court announced an order from the Himaal Pradesh High Court in May 2024 that allowed the company to pay only 12% royalties. According to a 1999 agreement between the state and the company, the royalties were 12% for the first 12 years of the project, and then fixed by 18% for the remaining 28 years.
After the project started operations in September 2011, the company paid a 12% royalty, but refused to pay 6% from September 2023.
This dispute reached the Himaal Pradesh High Court and made a decision for the company. The state government has filed a high court ruling in the Supreme Court.
The government ruled the case with the assistance of the country’s leading legal experts, and eventually, the court ruled in favour of the state government. In this case, senior advocate Kapil Sibal, Prag Tripathi, advocate Noop Kumar Ratan and other advocate Baibhav Srivastava appeared on behalf of the state government.
The spokesman also pointed out that the state government has been constantly advocating the interests of the state under Chief Minister Sukhu, and this decision is an important step in this direction, which restores its rights to the success of Himachal Pradesh.
Even before that, while showing strong will, the current state government made the court decide on the Wild Flower Hall case, which has been involved in legal disposal since 2002. After the court’s ruling, the property is now under control of the state government again, so the government will receive tax benefits from the estate property in the future.
