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Informist, Wednesday, Jul. 16, 2025

 

--SC upholds Himachal's 18% free electricity demand from JSW Hydro plant 

--CONTEXT: HC directed 13% free electricity to Himachal from JSW Hydro plant

 

NEW DELHI – The Supreme Court on Wednesday upheld the Himachal Pradesh government's demand for 18% free electricity supply from JSW Hydro Energy Ltd.'s Karcham Wangtoo hydroelectric power plant of 1,045 megawatts capacity in Himachal Pradesh. The apex court set aside the Himachal Pradesh High Court's order to give only a maximum of 13% of free electricity to the state government from the power plant.

 

"We have allowed the appeal (by the Himachal Pradesh government)," said a bench of Justices P.S. Narasimha and Atul S. Chandurkar. The bench said it had also laid down certain principles on the issue concerned. A detailed order on the same is awaited. 

 

The issue revolves around the quantum of free power to be supplied by JSW Hydro Energy's power project to Himachal Pradesh government. As per agreements executed between the parties, the plant should supply free power at 18% of the net generation for 28 years to the state after the completion of 12 years of commercial operations of the project that commenced in 2011. However, CERC (Terms and Conditions of Tariff) Regulations, 2019 capped the maximum free supply at 13% of the net generation.

 

JSW Hydro had argued that it was being compelled by the state to supply 18% free power from September 2023, whereas Central Electricity Regulatory Commission, in its decision in 2022, had held that in view of CERC (Terms and Conditions of Tariff) Regulations 2019, maximum free energy supply to the home state has to be taken as 13%. According to JSW Hydro, the commission had also ordered that provisions in the previously executed agreements between the state and the company in respect of free power supply shall stand overridden by the ones in the Tariff Regulations 2019. 

 

The state government defended its move to take 18% free power from JSW Hydro Energy's power plant. The state government said the agreements executed by it with the company will have supremacy over the Tariff Regulations 2019 and JSW Hydro Energy's liability thereunder is for supplying 18% free power for 28 years after 12 years from the commercial operation date. 

 

JSW Hydro Energy is a wholly-owned subsidiary of JSW Neo Energy Ltd. and is a step-down subsidiary of JSW Energy Ltd.  End

 

Reported by Surya Tripathi

Edited by Tanima Banerjee

 

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