J&K's Hydropower Sector Growth: Projects, Delays, and Tariffs

J&K's Hydropower Sector Growth: Projects, Delays, and Tariffs.webp


Jammu, Feb 9 Jammu and Kashmir is set to witness a major expansion in its hydropower sector, with the combined installed generation capacity expected to reach 7,314.85 MW in 2030-31, Chief Minister Omar Abdullah said on Monday.

In a written reply to a question by National Conference legislator Khurshied Ahmad in the Legislative Assembly, Abdullah said J&K has 32 operational hydropower projects with an aggregate installed capacity of 3,540 MW.

These include 13 Union Territory sector projects with 1,197 MW, six central sector projects generating 2,250 MW, and 12 private sector (IPP) projects with a combined capacity of 92.75 MW, Abdullah, who is incharge minister of the Power Development Department, said.

He said the government has planned a capacity addition of 3,704.5 MW through eight proposed and six under-construction hydroelectric power projects, scheduled to be commissioned between 2026–27 and 2030–31.

The chief minister said there will be 1,685.7 MW capacity addition in 2026-27, 577.5 MW in 2027-28, 1,370 MW in 2029-30 and 141 MW in 2030-31, taking the overall installed capacity to 7,314.85 MW.

In response to another question about the delay in the execution of the Ans (Nandoli) hydropower project in Ahmad's constituency, Gulabgarh, which was tendered during 2011-12, Abdullah said the project was allotted in November 2012, and the implementation agreement was executed in March 2013.

However, the execution of the project has been delayed due to the non-performance by the Independent Power Producer (IPP), on account of which the corporation issued a notice of default to it in August 2025, he said. In response, he said the IPP submitted the Detailed Project Report (DPR) on October 8, 2025.

Further, the IPP submitted a financial analysis indicating a levelized tariff of Rs 7.30/kwh, rendering the project techno-economically unviable as per the prevailing tariffs in the energy market.

The IPP has sought exit from the project along with a refund of the deposited premium amount, attributing the delay to external factors and policy-related constraints, the chief minister said, adding that the matter is under consideration by the J&K State Power Development Corporation in accordance with the provisions of the implementation agreement and the Hydro Electric Power Policy 2011.

Earlier, the chief minister informed the house that all the villages in the Jammu division are electrified, whether in on-grid or off-grid mode.

“No village remains un-electrified. However, some habitations or morhas or households which have recently come up are unelectrified. Efforts are underway to electrify these un-electrified or partially electrified habitations or households under the centrally sponsored scheme DA-JGUA/ UT Capex,” Abdullah said in response to a question by BJP's Satish Kumar Sharma.

The chief minister said some rural and remote habitations or morha, not villages, like Thingen, Kanodi and Hanok of Panchayat Madoon/Dehota in Billawar area are unelectrified or partially electrified.

He said expansion of habitations in remote areas is a continuous process which requires extension of LT network at regular intervals.

The unelectrified habitations or households in Billawar Constituency were proposed for electrification under the DA-JGUA scheme and electrification of most of the unelectrified households have been approved under the DA-JGUA scheme which is being executed through JPDCL Project Division, Jammu, Abdullah said.

However, he said some habitations like Thingen, Kanodi and Hanok were earlier dropped from the final sanctioned Detailed Project Report due to cost escalation of the work. The DPRs for these habitations are being prepared.
 
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hydroelectric projects hydropower independent power producer (ipp) jammu and kashmir power generation
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