JSW Energy has announced that its wholly-owned subsidiaries, JSW Hydro Energy Limited and JSW Energy (Kutehr) Limited, have filed writ petitions before the High Court of Himachal Pradesh. The legal challenge targets the Himachal Pradesh Land Revenue (Amendment) Act, 2025, and related rules, which seek to impose a levy on hydroelectric projects based on the Average Market Value of the installations. The company contends that this levy functions as a charge on electricity generation infrastructure.
Context of the Legal Challenge
The petitions filed by the subsidiaries aim to contest the constitutional validity and legal sustainability of the recent amendments to the Himachal Pradesh Land Revenue Act and the corresponding Special Assessment Rules. The company has formally initiated these legal proceedings in response to specific demand notices issued by the state authorities regarding these new assessment mandates.
Impact on Hydroelectric Assets
The impugned legislation introduces a structure where land revenue is calculated as a percentage of the Average Market Value of hydroelectric projects. JSW Energy maintains that this assessment method is fundamentally flawed. Specifically, the company has received professional advice indicating that the tax is effectively a levy on electricity generation infrastructure rather than a legitimate tax on land.
Industry-Wide Implications
This challenge is not an isolated incident. Various other companies operating hydro power plants in the state of Himachal Pradesh have also filed similar writ petitions to safeguard their interests. JSW Energy believes the current legislation is constitutionally infirm on multiple independent grounds and is seeking judicial intervention to resolve the matter and protect its operational assets from what it deems an improper financial burden.
Source: BSE
