Interim: Himachal HC stays hike in Electricity duty for Medium and Large industries

Shimla, Apr 28,

The Himachal Pradesh High Court has restrained HPSEB from collecting electricity duty beyond 16.5% from medium and large industrial consumers. The division bench, comprising Justice Tarlok Singh Chauhan and Justice Sushil Kukreja, while hearing the matter on April 25, 2025, took cognizance of the petitioner’s grievance regarding the enhancement of electricity duty rates for large and medium industrial consumers.

The interim directions came in the matter of Rajat Thakur vs. HPSEB Ltd. & Ors. Case. Represented by Aditya Chauhan, the petitioner challenged the successive increases made under the notifications dated September 1, 2023, and January 18, 2024, arguing that the initial duty rate fixed at 11% from July 20, 2017, had been escalated unlawfully to 17%, 19%, 25%, and subsequently to 37.5%. It was contended that such increases were in violation of sub-section (2) of Section 11 of the Himachal Pradesh Electricity (Duty) Act, 2009, which permits the State Government to revise electricity duty rates through notifications but restricts any single revision to not more than 50% of the earlier specified rate.

Appearing for the respondents, Senior Advocate Sunita Sharma along with Dhananjay Sharma represented HPSEB Ltd., while the State was represented by Additional Advocate Generals Ramakant Sharma, Navlesh Verma, Sharmila Patial, Sushant Kaprate, and Deputy Advocate General Raj Negi. Notices were accepted by counsels on behalf of the respondents, and the Court directed that replies, as prayed, be filed within four weeks.

Observing that the increase from 11% to 17%, 19%, and 25%, and further to 37.5%, prima facie appeared contrary to the statutory provisions, the Court restrained the respondents from collecting electricity duty beyond 16.5% from medium and large industrial consumers. The matter has been listed for further hearing on June 5, 2025.

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The HimachalScape Bureau comprises seasoned journalists from Himachal Pradesh with over 25 years of experience in leading media conglomerates such as The Times of India and United News of India. Known for their in-depth regional insights, the team brings credible, research-driven, and balanced reportage on Himachal’s socio-political and developmental landscape.

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Himachalscape bureau

The HimachalScape Bureau comprises seasoned journalists from Himachal Pradesh with over 25 years of experience in leading media conglomerates such as The Times of India and United News of India. Known for their in-depth regional insights, the team brings credible, research-driven, and balanced reportage on Himachal’s socio-political and developmental landscape.