Govt reports Rs 3500 cr revenue from SEWA-II hydel power project

Srinagar, Mar 25: The Jammu and Kashmir government has disclosed that the SEWA-II Hydel Power Project has generated a substantial revenue of ₹3500.42 crore since its inception. This revelation was made in response to a starred question by MLA Dr. Rameshwar Singh, underscoring the project’s significant financial impact on the region’s power sector.
In addition to the impressive revenue figures, ₹30.41 crore has been allocated to Jammu and Kashmir under the 1% Local Area Development Fund (LADF), reflecting the monetized value of 68.81 million units (MU) of energy produced by the 120 MW SEWA-II Hydel Power Project. This fund is extended as subsidized energy to consumers across the Union Territory. However, the bulk of developmental activities continues to be executed under various Central and UT sector schemes.
Meanwhile, the government has reiterated its commitment to establishing the 9.5 MW SEWA-I Hydroelectric Power Project on the Sewa River. The proposed project, with an estimated cost of ₹129.76 crore at June-2017 price levels, was initially approved under the PMDP-15 package as part of the Small Hydro Development Programme. The tender for the project was issued in 2018 for implementation in EPC mode under PMDP.
However, the SEWA-I project has faced financial viability challenges, preventing its development. The Government of Jammu and Kashmir has raised the issue in multiple review meetings with the Government of India, requesting up to 70% central financial assistance under PMDP to make the project feasible. Despite persistent efforts, no central grants have been received so far.
Meanwhile, the government has set an ambitious target to harness Jammu and Kashmir’s hydro power potential of 18,000 MW, with a major focus on the Chenab Valley. Currently, four large hydroelectric power projects are under construction over the Chenab River, including Pakal Dul (1000 MW), Kiru (624 MW), Kwar (540 MW), and Ratle (850 MW) Hydro Electric Projects (HEPs), contributing to a cumulative installed capacity of 3014 MW. The reply was in response to a starred question raised by MLA Banihal Sajjad Shaheen.
As per the latest physical progress report ending February 2025, Pakal Dul has achieved 65% completion, Kiru 54.09%, Kwar 18.65%, and Ratle 20.01%. These projects are being implemented by Chenab Valley Power Projects Limited (CVPPL) and Ratle Hydroelectric Power Corporation Limited (RHPCL), both joint ventures of NHPC and JKSPDC in a 51:49 partnership.
Regarding the hydro power potential of Jammu and Kashmir, it said that an estimated potential of 18,000 MW, out of which 14,867 MW has been identified. This includes 11,283 MW in the Chenab basin, 3084 MW in the Jhelum basin, and 500 MW in the Ravi basin. As of now, only 3540.15 MW (23.81% of the identified potential) has been harnessed.
The breakdown of harnessed capacity is Chenab Basin: 2033.05 MW, Jhelum Basin: 1378.1 MW and Ravi Basin: 129 MW
“Additionally, under a Memorandum of Understanding (MoU), the 1856 MW Sawalkote and 258 MW Dulhasti HEP have been allotted to NHPC for development on a Build-Own-Operate-Transfer (BOOT) basis. Three other large hydro projects in the Chenab Basin, namely the 800 MW Bursar, 390 MW Kirthai-I, and 930 MW Kirthai-II, are at the DPR formulation or appraisal stage,” it said.
Smaller hydro projects on Pogal Nallah and Mahu River also form part of the government’s hydro power strategy. On Mahu River, the 3.75 MW Khari HEP has been successfully commissioned. Two additional projects—1.5 MW Kawna HEP and 1.2 MW Buzla HEP—have been awarded by JAKEDA, with development set to commence soon. On Pogal Nallah, two more projects—2 MW Pogal-I HEP and 2 MW Pogal-II HEP—will be tendered shortly under the Independent Power Producer (IPP) mode.