NHPC, Jammu Kashmir Power Corporation Sign Pact for 500 MW Hydropower Expansion Amid Ongoing Ownership Debate | Kashmir Life

SRINAGAR: State-owned NHPC Limited and the Jammu ‎Kashmir State Power Development Corporation Limited (JKSPDCL) on Friday signed an implementation agreement for the development of two major hydroelectric projects with a combined capacity of 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 will be executed by NHPC under the BOOT (Build-Own-Operate-Transfer) model, under which the central utility will construct, own, and operate the projects for a concession period of 40 years before transferring them back to the Union Territory.

The pact was signed by JKSPDCL Managing Director Rahul Yadav and NHPC Executive Director Anish Gouraha in the presence of senior officials from both sides. NHPC Chairman and Managing Director Bhupender Gupta described the agreement as a significant step toward strengthening hydropower infrastructure in the region and advancing India’s clean energy goals.

The Uri-I Stage-II project is proposed on the Jhelum River in the Baramulla district as an extension of the existing Uri-I plant. It is expected to generate approximately 932.60 million units (MU) of electricity annually.

The Dulhasti Stage-II project will expand the existing Dulhasti hydropower station in Kishtwar district, which was commissioned in 2007 with a capacity of 390 MW. The second stage is projected to produce about 1,093.11 million units of electricity annually.

Officials indicated that both projects are designed as downstream or extension schemes, relying on infrastructure and water flows from their respective Stage-I installations.

NHPC has maintained a significant operational presence in Jammu and Kashmir for over two decades. It 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)—with a combined installed capacity of 2,250 MW under agreements with the JK government.

In addition, two large projects—Ratle (850 MW) and Pakal Dul (1,000 MW)—are under construction through joint venture arrangements between NHPC and JKSPDCL.

Under existing agreements, Jammu and Kashmir receives over 12 per cent of the power generated from NHPC-operated projects as free power, while the remaining electricity is fed into the national grid. The Union Territory subsequently procures additional power at market rates to meet its deficit.

The latest agreement comes at a politically sensitive moment, with the issue of ownership and control of hydropower projects gaining renewed attention in Jammu and Kashmir.

A private member’s resolution moved in the legislative assembly by National Conference legislator Sajad Shaheen seeks the phased return of NHPC-operated projects to the Union Territory government. The demand reflects a long-standing political position cutting across party lines, including earlier recommendations by expert committees and provisions in coalition agreements.

The question of ownership has persisted since the mid-2000s. A working group on Jammu and Kashmir’s economic development, constituted by then Prime Minister Manmohan Singh, had recommended the transfer of certain projects, including Dulhasti, to the state. Subsequent state-level panels also examined the issue but without any substantive change in control.

The agreement also aligns with the Centre’s renewed emphasis on hydropower development in the region following the suspension of the Indus Waters Treaty after the April 2025 Pahalgam terror attack. Officials said that while project planning continues to adhere to treaty parameters, there is a clear push to accelerate the utilisation of Jammu and Kashmir’s hydropower potential.

Chief Minister Omar Abdullah, who also holds the power portfolio, has stated that the Union Territory has an estimated hydropower potential of around 18,000 MW, of which about 15,000 MW has been identified. Currently, approximately 3,540 MW has been developed.

The government has set an ambitious target to scale up installed capacity to 11,000 MW by 2035, positioning hydropower as a central pillar of the region’s energy security and economic development strategy.

With a combined capacity of 500 MW, the Uri-I Stage-II and Dulhasti Stage-II projects are expected to enhance generation capacity, improve grid stability, and contribute to India’s renewable energy commitments. However, the parallel debate over ownership and control of hydropower assets continues to shape the political and policy landscape surrounding such investments in Jammu and Kashmir.