Will Himachal Pradesh Receive Enhanced Royalty from Karcham-Wangtu Hydro Project?
Click to start listening
Synopsis
In a landmark ruling, the Supreme Court has upheld Himachal Pradesh's right to an increased royalty from the Karcham-Wangtu hydroelectric project, promising substantial financial benefits for the state. Chief Minister Sukhu's relentless advocacy for natural resource rights has paved the way for this pivotal decision.
Key Takeaways
- The Supreme Court has ruled that Himachal Pradesh is entitled to an 18 percent royalty from the Karcham-Wangtu hydro project.
- This decision will mean an additional annual income of Rs 150 crore for the state.
- The ruling sets a precedent for other projects reaching the 12-year mark.
- Chief Minister Sukhu's efforts were crucial in advocating for the state's natural resource rights.
- The Supreme Court overturned a previous ruling that allowed a lower royalty payment.
Shimla, July 16 (NationPress) In a significant financial boost for Himachal Pradesh, the Supreme Court has declared that the state is entitled to receive enhanced royalty from the massive Karcham-Wangtu hydroelectric project located in the Kinnaur district.
A prominent power company will now be obligated to pay 18 percent royalty to the state instead of the previous 12 percent from the 1,045 MW project.
A government representative stated on Wednesday that this ruling will provide the state with an additional annual revenue of approximately Rs 150 crore.
Furthermore, this landmark decision by the apex court could set a precedent for other projects that have reached the 12-year mark, as the government anticipates that it could lead to an annual income exceeding Rs 250 crore for the exchequer.
The spokesperson noted that Chief Minister Sukhvinder Sukhu took personal initiative in advocating for the state's rights regarding its natural resources.
This Supreme Court ruling is poised to not only enhance state income but also ensure that the residents benefit from their own resources.
The apex court overturned the ruling made by the Himachal Pradesh High Court in May 2024, which had permitted the company to continue paying only 12 percent royalty.
According to a 1999 agreement between the state government and the company, the royalty was established at 12 percent for the initial 12 years of the project, transitioning to 18 percent for the subsequent 28 years.
Since the project commenced operations in September 2011, the company has been paying 12 percent royalty for the first 12 years but has resisted paying the additional six percent royalty from September 2023.
This dispute escalated to the Himachal Pradesh High Court, which ruled in favor of the company.
The state government subsequently appealed the high court's decision to the Supreme Court. The spokesperson emphasized that under Chief Minister Sukhu's leadership, the government has been diligently advocating for the state's interests, and this ruling is a significant victory towards reclaiming those rights.
Point of View
I recognize the significance of the Supreme Court's ruling for Himachal Pradesh. This decision not only reaffirms the state's rights over its natural resources but also highlights the importance of robust advocacy in governance. It serves as a reminder that the interests of local populations must be prioritized in resource management, ensuring they receive their fair share of benefits.
NationPress
17/07/2025
Frequently Asked Questions
What is the enhanced royalty percentage for Himachal Pradesh?
The enhanced royalty for Himachal Pradesh from the Karcham-Wangtu hydroelectric project has been set at 18 percent.
How much additional revenue will the state receive?
The state is expected to gain an additional annual income of approximately Rs 150 crore from this ruling.
What was the previous royalty percentage before the ruling?
Before the ruling, the royalty percentage was set at 12 percent.
Who advocated for this decision?
Chief Minister Sukhvinder Sukhu took personal initiative to advocate for the state's rights over its natural resources.
What does this ruling mean for other projects?
This ruling could set a precedent for other projects that have completed 12 years, potentially increasing their royalty payments as well.
