Karacham-Wangtoo hydroelectric project to generate additional revenue of Rs 150 Crore

Following a favorable ruling by the Supreme Court, the Himachal Pradesh government will now receive an additional Rs 150 crore from the 1,091 MW Karacham-Wangtoo hydroelectric power project in Kinnaur district.

The government had filed an appeal in the Supreme Court seeking 18 percent free power from the project, instead of the existing 12 percent as per the initial agreement. This decision may lead to other projects also having to accept the state government’s demand for increased royalties.

Under the agreement signed between the state government and JSW Energy, the company operating the project, in 1999, the royalty was fixed at 12 percent for the first 12 years and 18 percent for the remaining 28 years.

The project became operational in September 2011. While the company paid a 12 percent royalty for 12 years, it refused to pay the additional 6 percent royalty from September 2023 onward.

The matter later reached the Himachal Pradesh High Court, which ruled in favour of the power company. The state government subsequently challenged the High Court ruling in the Supreme Court.