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HC seeks HP govt reply on 2% land revenue levy on hydropower companies

HP High Court issued notice to the state government on petitions by hydropower companies challenging a 2% land revenue levy on projects.

The firms have challenged the 2% land revenue levy imposed on hydropower projects.The Himachal Pradesh High Court has sought a reply from the state government on petitions filed by hydropower companies. (File Photo)

The Himachal Pradesh High Court has issued a notice to the state government seeking a reply on the petition of hydropower companies challenging a two per cent land revenue levied on them.

Hearing the petition, which sought the court to restrain the government from recovering the proposed land revenue, a division bench of Justice Vivek Singh Thakur and Justice Ranjan Sharma issued the notice on Friday, and scheduled the next date of hearing on March 23.

Last month, the companies challenged the amendments and notifications issued by the state government under which a provision was made to levy land revenue at two per cent on the average market value of hydropower projects from January 1, 2026.

The petitions primarily seek the quashing of notifications issued on October 6, December 1 and December 11, 2025.

A senior lawyer representing the petitioners said, “The petitioners argue the amendments are contrary to the provisions of the Himachal Pradesh Land Revenue Act, 1954, and the Constitution of India. They have sought directions from the court to restrain the government from recovering the proposed land revenue.”

The levy will apply to 191 hydropower projects across the state. Of these, the highest 45 projects are located in Chamba district, and 35 in Kullu.

 

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