The Himachal Pradesh government has secured a significant legal victory from the Supreme Court. The Court has delivered a historic verdict in favour of the state government regarding royalty from the Karcham-Wangtu hydroelectric project. As per an official press release, JSW Energy will now be required to pay 18 per cent royalty to the state instead of the earlier 12 per cent from the 1045 MW project.

A government spokesperson said this judgment will result in an additional annual income of around ₹150 crore. Moreover, the Supreme Court’s decision is expected to be a landmark for other hydro projects that have completed 12 years, and the government anticipates total earnings of over ₹250 crore annually. He further added that Chief Minister Sukhvinder Singh Sukhu took personal initiative on this matter and worked diligently to secure the state's rights over its natural assets. This ruling will not only boost state revenue but also ensure Himachali citizens receive the due benefits of their resources.

The Supreme Court's decision overturns the Himachal Pradesh High Court’s May 2024 order, which had permitted the company to continue paying only 12 per cent royalty. As per the 1999 agreement between the state and the company, royalty was set at 12 per cent for the first 12 years and 18 per cent for the remaining 28 years. After operations began in September 2011, the company paid 12 per cent royalty until September 2023 but then refused to pay the additional 6 per cent.

The matter was taken to the Himachal Pradesh High Court, which ruled in favour of the company. The state government then appealed to the Supreme Court. Following the Chief Minister’s directive, the state government presented its case strongly, assisted by leading legal experts. Eventually, the Court ruled in the state’s favour. Senior advocates Kapil Sibal, Prag Tripathi, Advocate General Anoop Kumar Ratan, and Additional Advocate General Baibhav Srivastava represented the state in the Supreme Court.

The spokesperson also said that under Chief Minister Sukhu’s leadership, the government has consistently fought for Himachal’s interests, and this verdict is a major milestone in that effort. Previously, the current government also won the long-standing legal dispute over Hotel Wild Flower Hall. The case, which began in 2002, involved a disagreement between the state and a private hotel group over ownership and management. After the court's decision, the property returned to government control, ensuring future revenue from this heritage site.