The Supreme Court has ruled in favour of the Himachal Pradesh government, mandating JSW Energy to pay 18 per cent royalty for the 1,045 MW Karcham-Wangtoo project, up from 12 per cent.

The verdict overturns a May 2024 High Court decision and could boost state revenue by Rs 1.50 billion annually. It may also set a precedent for other hydro projects, potentially adding Rs 2.50 billion per year.

CM Sukhvinder Singh Sukhu played a crucial role in advancing the case. Under the 1999 agreement, JSW was to pay 12 per cent for the first 12 years and 18 per cent thereafter. JSW, however, refused the revised rate in 2023.

The decision is hailed as a major win for both the state treasury and its people.