Jammu Kashmir has long sought to reclaim control over its hydropower resources, with successive governments making repeated efforts to secure the return of key projects operated by the National Hydroelectric Power Corporation (NHPC).
The issue remains at the forefront of the region’s energy policy, with Chief Minister Omar Abdullah now intensifying efforts to fast-track ongoing projects and explore ways to reduce reliance on externally controlled hydropower generation.
During a recent high-level review meeting of the Jammu Kashmir State Power Development Corporation Limited (JKSPDC) at the Civil Secretariat, Abdullah emphasized the need to expedite the completion of major projects to achieve energy self-sufficiency. He called for resolving obstacles that have delayed several hydropower ventures and directed officials to examine revival plans for stalled projects.
His renewed focus on energy sustainability comes amid long-standing demands for the return of NHPC-controlled projects, which many in the region see as crucial for Jammu Kashmir’s economic and developmental future.
The fight for ownership of these projects dates back decades. In 2000, an MoU between Jammu Kashmir and NHPC allowed the latter to fund, execute, and operate certain hydropower projects while retaining ownership with the state. However, despite provisions for their eventual return, NHPC has resisted multiple requests to transfer projects such as Salal, Uri-I, and Dulhasti back to Jammu and Kashmir.
Former Chief Minister Omar Abdullah has consistently advocated for reclaiming these projects. In April 2013, during his tenure as Chief Minister, he declared that his government would not allocate any new projects to NHPC unless it returned at least three major hydropower projects to the state.
A decade later, in November 2023, Abdullah renewed his appeal, urging Prime Minister Narendra Modi to return NHPC-controlled power projects to the people of Jammu Kashmir.
The Rangarajan Committee in 2006 had earlier recommended handing over the 390 MW Dulhasti project to the state, but NHPC refused. Similarly, in 2011, a Cabinet Sub-Committee was formed to review the terms of these agreements, proposing measures such as seeking a greater share of the generated power and negotiating for ownership transfers. However, NHPC remained unyielding.
Efforts continued under various administrations, including Mehbooba Mufti’s tenure, when she urged the Centre to return at least two NHPC-operated projects to the state. Despite these persistent demands, NHPC has maintained its control over key hydropower assets.
In 2021, a new Memorandum of Understanding (MoU) was signed between the Jammu Kashmir administration and NHPC, granting the corporation additional projects, including the 1,856 MW Sawalkote Hydroelectric Project, 258 MW Dulhasti Stage-II, and 240 MW Uri-I Stage-II, on a Build-Own-Operate-Transfer (BOOT) basis for 40 years. Under the agreement, Jammu Kashmir is entitled to 12 percent free power from these projects and holds the first right of refusal to purchase 50 percent of the generated power.
The Jammu Kashmir government continues to explore financial and legal avenues to push for the return of its hydroelectric assets. However, NHPC’s reluctance, coupled with the Centre’s control over energy policies, has made negotiations difficult.
For now, the region remains heavily dependent on NHPC for its power supply. But with renewed political will under Omar Abdullah’s leadership, there is a growing push to ensure that Jammu Kashmir regains greater control over its energy resources, reducing its reliance on external entities and securing a stronger economic future.
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