HP High Court Directs Govt to Provide 15PC Electricity Rebate to Industries Under 2019 Policy

Shimla, May 8, 2025 – In a significant ruling, the Himachal Pradesh High Court has directed the state government to provide a 15% rebate on electricity charges to eligible industries under the Himachal Pradesh Industrial Policy dated August 26, 2019. The order was issued by a division bench comprising Justice Tarlok Singh Chauhan and Justice Sushil Kukreja.

The court observed that as per Section 16 (A & B) of the 2019 policy, industries that meet the prescribed criteria are entitled to a 15% concession on electricity charges for a period of three years. The ruling came in response to a petition filed by *Kundla Iron Industry*, which challenged the government’s failure to implement the said provisions despite qualifying under the notified parameters.

The petitioner contended that although the policy promised the benefit, the Directorate of Industries did not implement it, denying entitled industries their due. The court upheld the petitioner’s claim and ordered the state to extend the benefit accordingly.

However, Advocate General Anup Rattan, representing the state, argued that offering rebates could lead to financial losses for the government. He further stated that the state would seek legal advice before taking any further steps.

The ruling is expected to impact multiple industrial units awaiting enforcement of the policy benefits.