Himachal High Court halts ‘Steep hike’ in ‘Power duty’ for Medium industries
Baddi Industrial are photo used for indicative purpose only
Shimla, July 16,
A development for Himachal Pradesh’s industrial sector, the High Court has stayed the state government’s recent hike in electricity duty imposed on medium and large-scale industries. The court observed that the increase appears to exceed the permissible legal limit set under the Himachal Pradesh Electricity (Duty) Act, 2009.
The interim order was passed by a Division Bench comprising Justice Tarlok Singh Chauhan and Justice Sushil Kukreja on July 14, 2025, while hearing a petition filed by M/s Nandi Stone Crushing Co. (CWP No. 11231 of 2025). The court directed the state not to levy electricity duty beyond 16.5 percent on such industrial consumers until further notice.
Representing the petitioner, Advocate Manik Sethi pointed out that the duty, originally fixed at 11 percent as per a 2017 notification, was increased several times—first to 17 percent, then to 19 percent and 25 percent through a September 1, 2023 notification, and finally to 37.5 percent via a notification issued on January 18, 2024.
The petitioner argued that these successive increases violate Section 11(2) of the Electricity (Duty) Act, which restricts the government from raising electricity duty by more than 50 percent of the previously notified rates under Section 3. Taking cognizance, the Bench remarked that the hike prima facie appears to be in breach of this statutory cap.
Senior Advocate Sunita Sharma, assisted by Advocate Sugandh Verma, appeared on behalf of HP State Electricity Board Ltd (HPSEBL), while Additional Advocate General Sharmila Patial and Deputy AG Raj Negi represented the state.
The High Court has restrained the authorities from collecting electricity duty above 16.5 percent until further directions are issued. The matter has been clubbed with a related case (CWP No. 10032 of 2023) and will next be heard on July 17, 2025.
The ruling has brought attention to the statutory limitations on the state’s authority to revise electricity duty rates and is expected to impact several other pending industrial petitions challenging similar increases.
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