Apex court order will boost royalty revenue from hydropower by Rs 150 crore: MLA

The landmark judgment of the Supreme Court directing JSW Energy to pay 18 per cent royalty instead of 12 per cent for its 1,045 MW Karcham-Wangtoo hydroelectric project is a historic win for the state government.

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Kewal Singh Pathania, Deputy Chief Whip and Shahpur MLA, while addressing mediapersons at Dharamsala today, said that the court verdict was a major legal victory, as it would bring in additional Rs 150 crore as revenue to the state every year.

He said that the Supreme Court’s decision also set a precedent for similar hydroelectric power projects that had completed their initial 12-year royalty period. It would potentially increase the state’s revenue by over Rs 250 crore every year.

The Supreme Court’s ruling overturns a Himachal High Court’s order of May 2024 in the favour of the company. Pathania also highlighted the successful resolution of the long-disputed Wild Flower Hall case and warned Central Public Sector Undertakings (CPSUs) like the SJVN to comply with the state’s energy policies or face the risk of takeover of key projects by the government.

Pathania credited Chief Minister Sukhvinder Singh Sukhu with prioritising the state’s rights over natural resources, especially water. He added that the government was concerned over its legitimate dues in other energy projects, including 210 MW Luhri Phase-1, 382 MW Sunni and 66 MW Dhaula Sidh hydroelectric power projects together with the acquisition of the 110 MW Shanan power project at present run by Panjab.

He also urged the Central Government to facilitate the release of Rs 4,500 crore pending with the Bhakra Beas Management Board (BBMB) and 13,066 million units of electricity dues.

The aim of the Congress government is to make the state self-reliant by 2027 and one of India’s most prosperous ones by 2032, driven by assertive policies and rising revenue from mining and hydropower.