NHPC Limited developed the 390 MW Dulhasti Power Station through financing via equity and loans or market borrowings, the Centre informed Parliament.
In a written reply in the Rajya Sabha to a question raised by Member of Parliament Sajjad Ahmed Kichloo, Minister of State for Power Shripad Naik said that the project has been generating revenue since its commissioning in April 2007 through the sale of power at tariffs determined by the Central Electricity Regulatory Commission.
He stated that a significant portion of the revenue generated from the project is used to cover Operational and Maintenance expenses, debt servicing, and other obligations, while NHPC's earnings from the project are limited to the Return on Equity.
Regarding the proposed Dulhasti Stage-II Hydro Electric Project, the Minister said that the Central Electricity Authority had approved its Detailed Project Report on May 26, 2025. Environmental clearance for the project was granted on January 7, 2026, while forest clearance is not required as no forest land is involved.
He further informed that the Board of Directors of NHPC approved the investment proposal for the project on February 20, 2026, with a construction timeline of 44 months.
Naik said that under a Memorandum of Understanding signed on January 3, 2021 between NHPC and Jammu and Kashmir State Power Development Corporation Limited, the Dulhasti Stage-II project will be executed by NHPC on a Build-Own-Operate-Transfer (BOOT) basis.
The Minister added that acquisition of private land for the project is being carried out in accordance with the Right to Fair Compensation and Transparency in Land Acquisition Rehabilitation and Resettlement Act 2013, ensuring all benefits to Project Affected Families under the rehabilitation and resettlement scheme.
He also informed that jobs have already been provided to Project Affected Families in the existing Dulhasti Power Station, and currently, no cases related to employment for such families are pending.