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J&K finalises hydro power agreement, rejects ‘fresh handover’ claim

  • Aatif Qayoom By Aatif Qayoom
  • Comments 0
  • 03 Apr 2026

 

 

Srinagar, Apr 02: The Jammu and Kashmir government has clarified that the recent signing of the Implementation Agreement with NHPC for Uri-I Stage-II and Dulhasti Stage-II hydroelectric projects don’t amount to any fresh handover of projects. It said the move is part of an ongoing process rooted in earlier decisions and policy direction.

 

Officials stated that the proposal to implement these projects through NHPC on BOOT basis originated from the Board of Directors of J&K SPDC during its 76th meeting held on October 27, 2020.

 

This was followed by the signing of a Memorandum of Understanding between J&K SPDC and NHPC on January 3, 2021 in Jammu, at a time when there was no elected government in place.

 

The government said the present stage only involves finalisation of the Implementation Agreement after detailed deliberations held during 2025 and 2026. It added that the agreement aligns with the provisions of the earlier MoU and ensures safeguarding of J&K’s interests.

 

Responding to references about the 2011 Cabinet Sub Committee, the government said the panel had examined the issue of transfer or return of hydroelectric projects from NHPC.

 

The committee had recommended that development of certain projects, including Dulhasti Stage-II, be linked with transfer of ownership of existing assets.

 

However, no concrete steps were taken between 2015 and 2018 to implement these recommendations or to secure restructuring of NHPC projects.

 

Officials said the policy direction evolved during the period of LG administration, when a decision was taken in 2020 and 2021 to move ahead with new projects through NHPC on BOOT basis. This eventually led to the signing of the MoU.

 

The government said it has ensured key safeguards while finalising the agreement. These include 12 percent free power for J&K and 1 percent for the Local Area Development Fund, the right to purchase up to 50 percent of generated power, and mandatory local employment with 80 percent jobs reserved for domiciles, including project affected persons.

 

It also provides for transfer of projects to J&K free of cost after 40 years, while NHPC will bear full responsibility for execution, compliance, and costs.

 

The government maintained that the agreement protects J&K’s long-term interests and strengthens its position in hydropower development.

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