Himachal to get enhanced royalty from Karcham-Wangtu hydro project

Shimla, July 16 In a financial reprieve for Himachal Pradesh, the Supreme Court has pronounced that the state is entitled for the enhanced royalty from the mega Karcham-Wangtu hydroelectric project in Kinnaur district.

A leading power firm will have to pay 18 per cent royalty to the state instead of 12 per cent from the 1,045 MW project.

A spokesperson for the government on Wednesday said with this decision the government would get an annual additional income of about Rs 150 crore.

Also, the decision of the apex court would be a milestone for other projects that have completed 12 years and the government hopes that this decision would bring an income of more than Rs 250 crore per year to the exchequer.

The spokesperson said Chief Minister Sukhvinder Sukhu took this issue personally and made efforts to ensure the state's rights over the natural resources.

The Supreme Court decision would not only increase the income of the state but also give the people of the state the real benefit of their resources.

The apex court set aside the order of the Himachal Pradesh High Court of May 2024, in which the company was allowed to pay only 12 per cent royalty.

According to the agreement between the state government and the company of 1999, royalty was fixed as 12 per cent for the first 12 years of the project and then 18 per cent for the remaining 28 years.

After the project started operating in September 2011, the company paid 12 per cent royalty for 12 years, but refused to pay an additional six per cent royalty from September 2023.

The dispute reached the Himachal Pradesh High Court and the decision was given in favour of the company.

The government challenged the high court's decision in the Supreme Court. The spokesperson said under the leadership of Chief Minister Sukhu, the government has been advocating effectively for state interests and this decision is a strong step in that direction due to which the state is succeeding in regaining its rights.

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