SRINAGAR: State-owned NHPC Limited and the Jammu and Kashmir Power Development Corporation Limited (JKSPDCL) have signed an implementation agreement for the development of two hydroelectric projects totalling 500 megawatts in the Union Territory of Jammu and Kashmir.
The agreement, formalised in Jammu, covers the 240 MW Uri-I Stage-II and the 260 MW Dulhasti Stage-II projects. Both projects will be executed by NHPC under the Build-Own-Operate-Transfer (BOOT) model, where NHPC will construct, own, and operate them for a 40-year concession period before transferring them to the Union Territory administration.
Information was available with The Chenab Times that the pact was signed by JKSPDCL Managing Director Rahul Yadav and NHPC Executive Director Anish Gouraha in the presence of senior officials from both organisations. NHPC Chairman and Managing Director Bhupender Gupta stated that the agreement marks a significant stride in bolstering hydropower infrastructure in the region and advancing India’s clean energy objectives.
The Uri-I Stage-II project is planned on the Jhelum River in Baramulla district, serving as an extension of the existing Uri-I plant. This project is anticipated to generate approximately 932.60 million units of electricity annually.
The Dulhasti Stage-II project is set to expand the operational capacity of the Dulhasti hydropower station located in Kishtwar district. This station, commissioned in 2007, currently has an installed capacity of 390 MW. The proposed second stage is expected to contribute about 1,093.11 million units of electricity each year.
Officials indicated that both proposed projects are designed as downstream or extension schemes, leveraging the infrastructure and water flows from their respective Stage-I counterparts. This approach optimises resource utilisation and minimises the need for entirely new infrastructure.
NHPC has maintained a substantial operational presence in Jammu and Kashmir for over two decades. The company currently operates six hydropower projects in the region: Salal (690 MW), Uri-I (480 MW), Dulhasti (390 MW), Sewa-II (120 MW), Uri-II (240 MW), and Kishanganga (330 MW). These projects collectively represent an installed capacity of 2,250 MW, operating under agreements with the Jammu and Kashmir government.
Additionally, two significant hydropower projects, Ratle (850 MW) and Pakal Dul (1,000 MW), are currently under construction. These are being developed through joint venture arrangements between NHPC and JKSPDCL, underscoring continued collaboration in the sector.
Under the prevailing agreements, Jammu and Kashmir is entitled to over 12 per cent of the power generated from NHPC-operated projects as free power. The remaining electricity is supplied to the national grid. The Union Territory subsequently procures additional power at market rates to fulfil its energy demands and address any deficit.
The signing of this latest agreement occurs against a backdrop of heightened political discourse concerning the ownership and control of hydropower projects in Jammu and Kashmir. The issue has gained renewed attention in recent times.
A private member’s resolution, introduced in the legislative assembly by National Conference legislator Sajad Shaheen, proposes the phased return of NHPC-operated projects to the Union Territory government. This demand echoes a long-standing political sentiment that has been supported across various political parties and has previously been recommended by expert committees and included in coalition agreements.
The question of ownership has been a persistent subject of discussion since the mid-2000s. A working group established by the then Prime Minister Manmohan Singh to look into the economic development of Jammu and Kashmir had recommended the transfer of certain projects, including Dulhasti, to the state. Subsequent state-level committees also examined the issue, but these discussions did not result in any substantive changes in project control.
The new agreement also aligns with the central government’s intensified focus on hydropower development in the region. This push follows the suspension of the Indus Waters Treaty following the April 2025 Pahalgam terror attack. Officials have stated that while project planning continues to adhere to the treaty’s parameters, there is a discernible acceleration in efforts to harness Jammu and Kashmir’s substantial hydropower potential.
Chief Minister Omar Abdullah, who also oversees the power portfolio, has indicated that the Union Territory possesses an estimated hydropower potential of around 18,000 MW, with approximately 15,000 MW having been identified. To date, about 3,540 MW of this potential has been developed and operationalised.
The administration has set an ambitious target to increase the installed hydropower capacity to 11,000 MW by 2035. Hydropower is positioned as a crucial component of the region’s strategy for energy security and economic advancement.
With their combined capacity of 500 MW, the Uri-I Stage-II and Dulhasti Stage-II projects are expected to significantly augment generation capacity, enhance grid stability, and contribute to India’s renewable energy targets. Concurrently, the ongoing discourse surrounding the ownership and control of hydropower assets continues to influence the political and policy environment for such investments in Jammu and Kashmir.
The Chenab Times News Desk