J&K sees ₹2347Cr power revenue, major hydro projects in pipeline: Govt

Srinagar, Mar 25: The Jammu and Kashmir power sector has witnessed a substantial growth, with the total revenue for the Jammu Power Development Corporation Limited (JPDCL) reaching ₹2,347.61 crore in 2023-24. Additionally, the Kashmir Power Development Corporation Limited (KPDCL) has recorded an impressive 176% surge in earnings. The government attributes this growth to enhanced operational efficiency and ongoing initiatives to expand hydroelectric power capacity, aiming to make Jammu and Kashmir power-surplus in the coming years.
In response to a starred question raised by MLA Arjun Singh Raju regarding the annual revenue of KPDCL and JPDCL, the government confirmed the substantial increase in earnings but clarified that the unbundling of power distribution companies (Discoms) remains incomplete. As a result, the revenues from power sales are still credited to Jammu and Kashmir’s consolidated fund, and the exact profit or loss figures have not yet been determined.
Despite this, the government pointed out that there has been a steady reduction in Aggregate Technical & Commercial (AT&C) losses, indicating improved efficiency in power distribution. JPDCL’s AT&C losses have decreased from 39% in 2020-21 to 31% in 2023-24, while KPDCL saw a significant reduction from 65% to 51.98% during the same period.
The government is also focusing on achieving power-surplus status for Jammu and Kashmir, with several major hydroelectric projects currently under development. These include the 1000 MW Pakal Dul HEP, 624 MW Kiru HEP, 540 MW Kwar HEP, and 850 MW Ratle HEP, all located on the Chenab River in Kishtwar. These projects are expected to add a combined 3,014 MW of capacity by 2027. Additionally, the 37.5 MW Parnal HEP in Poonch and the 12 MW Karnah HEP in Kupwara will bring the total capacity addition to 3,063 MW by 2027-28.
The government also noted that another 4,563 MW is projected from upcoming projects, including Kirthal-I, Dulhasti-II, Bursar, Sawalakote, Uri-I Stage-II, Ujh, and Kirthai-II.
Among these projects, the 1,856 MW Sawalakote HEP is being developed under a 40-year Build, Own, Operate, and Transfer (BOOT) arrangement with NHPC under a 2021 MoU between the JKSPDC and the Government of Jammu and Kashmir. Construction of the approach roads is currently underway. However, the third phase of the Bhaglihar Hydroelectric Project has been stalled, as a concept note submitted by M/S Jay Prakash Limited in 2015 was deemed inadequate. A comprehensive feasibility study is now required to move the project forward.
The government also updated the Legislative Assembly on the status of the New Ganderbal Hydel Power Project, which has faced several delays. According to official responses to a query raised by MLA Mushtaq Ahmad Guroo, the project has been re-tendered three times since 2012, with the most recent tender issued in June 2022.
The Central Electricity Authority (CEA) had initially approved the Techno-Economic Appraisal (TEA) for the project in June 2014. Following a two-stage bidding process, M/S Hindustan Construction Company (HCC) was awarded the contract with a final cost of ₹819.18 crore. However, HCC failed to submit the required Performance Bank Guarantee, leading to the forfeiture of their Earnest Money Deposit (EMD) of ₹10 crore in January 2018. This default led the JKSPDC Board to annul the bid and initiate a fresh procurement process.
In 2020, another attempt was made with package-wise tendering, similar to other major hydroelectric projects like Pakal Dul, Kiru, and Kwar. However, despite multiple extensions, no bids were received, leading to the cancellation of the Notice Inviting Tender (NIT) in August 2020.
The most recent round of tendering in June 2022 yielded better results, with three bids received from M/s HCC-CPPPL (JV), M/s Uthwik-Haridwar (JV), and M/s Mega Engineering and Infrastructure Limited. After securing security clearance from the Ministry of Home Affairs in March 2024, commercial bids were opened. The lowest bid (L1) quoted a price of ₹1,401.8 crore, which was later negotiated down to ₹1,293.81 crore in multiple meetings of the Contract Committee.
Despite this progress, the government noted that the total estimated cost of the project, ₹1,630.18 crore, results in a high tariff of ₹8.25 per unit, making it unviable when compared to the levelized tariff of ₹4.5 per unit for other under-construction projects in Jammu and Kashmir.
The government further clarified that the delays in the New Ganderbal Hydel Power Project were primarily due to the default of the initial EPC contractor, lack of response to the 2020 tendering during the COVID-19 pandemic, and the viability concerns raised during the most recent round of tendering. Additionally, the government revealed that the Government of India is finalizing a new hydro policy to provide enhanced financial support for hydroelectric projects, which are increasingly becoming unviable due to the availability of cheaper renewable power.
“The final decision on proceeding with the 93 MW New Ganderbal Hydel Project will depend on the quantum of financial support available under the new policies being finalized by the Government of Jammu and Kashmir and the Government of India,” the government stated.