SRINAGAR: Six major hydropower projects operated by the National Hydroelectric Power Corporation (NHPC) in Jammu and Kashmir generated financial benefits worth Rs 5,537.32 crore for the Union Territory through water usage charges and the monetised value of free power and Local Area Development Fund (LADF) benefits during the last five financial years.
According to the Power Development Department’s reply to an Assembly Question tabled by Doda West MLA Shakti Raj Parihar, the six NHPC power stations, with a combined installed capacity of 2,250 MW, contributed Rs 3,582.06 crore in water usage charges and Rs 1,955.26 crore as the monetised value of 12 per cent free power plus one per cent LADF during the period from 2021-22 to 2025-26.
Salal, with an installed capacity of 690 MW, was the largest contributor, generating Rs 1,754.98 crore in water usage charges and Rs 295.78 crore through the monetised value of free power and LADF. Uri, with 480 MW capacity, contributed Rs 561.20 crore in water usage charges and Rs 248.41 crore in free-power and LADF benefits.
Dulhasti, with 390 MW capacity, contributed Rs 501.83 crore in water usage charges and Rs 521.86 crore in monetised free power and LADF, while Sewa-II, with 120 MW, generated Rs 36.08 crore in water usage charges and Rs 128.97 crore in free-power and LADF benefits.
Uri-II, having an installed capacity of 240 MW, contributed Rs 615.54 crore in water usage charges and Rs 355.60 crore in free power and LADF. Kishanganga, with 330 MW capacity, generated Rs 112.43 crore in water usage charges and Rs 404.64 crore through free power and LADF.
The department’s year-wise figures show that water usage charges from the six projects amounted to Rs 774.46 crore in 2021-22, Rs 735 crore in 2022-23, Rs 712.22 crore in 2023-24, Rs 670.70 crore in 2024-25 and Rs 689.67 crore in 2025-26.
The monetised value of free power and LADF stood at Rs 371.13 crore in 2021-22, Rs 414.75 crore in 2022-23, Rs 423.92 crore in 2023-24, Rs 369.18 crore in 2024-25 and Rs 376.27 crore in 2025-26.
The reply also gave the financial performance of the six NHPC stations. Their combined revenue from operations stood at Rs 4,225.29 crore in 2021-22, Rs 4,498.88 crore in 2022-23, Rs 4,538.17 crore in 2023-24, Rs 4,531.84 crore in 2024-25 and Rs 4,350.80 crore in 2025-26.
Their combined profit before tax was Rs 2,084.03 crore in 2021-22, Rs 2,125.19 crore in 2022-23, Rs 2,343.80 crore in 2023-24, Rs 2,076.78 crore in 2024-25 and Rs 1,792.51 crore in 2025-26.
Separately, the government said the power generated by hydropower projects owned and operated by the Jammu and Kashmir Power Development Corporation Limited (JKPDCL) is supplied to the J&K Government under applicable power allocation arrangements.
During the last five financial years, JKPDCL sold 19,222.21 million units of electricity to the UT at an average selling price of Rs 2.033 per unit. The corporation, meanwhile, paid Rs 745.151 crore to the J&K Government as water usage charges during the same period.
The government said the financial benefits from hydropower projects extend beyond free power and water usage charges. It said their operation generates recurring economic activity through maintenance, repairs, contracts, procurement, transportation, security, housekeeping and other ancillary services.
According to the reply, a substantial part of routine, minor and specialised maintenance works is undertaken through contractors and agencies operating around project areas, creating business opportunities for local firms, contractors and entrepreneurs. Outsourced manpower engaged in operational and support activities also provides employment to skilled, semi-skilled and unskilled workers.
The government further said NHPC’s corporate social responsibility initiatives contribute approximately Rs 19 crore annually towards local infrastructure development.
On the distribution of benefits among project-hosting districts, the government said Ramban had received Rs 1.56 crore under various CSR activities during the last two years, while Rs 49.29 lakh had been incurred in Doda for community development and socio-economic infrastructure.
The reply said JKPDCL currently has no operational projects in Doda and Kishtwar. However, four major hydropower projects are under construction in the two districts in joint-venture mode with NHPC through Chenab Valley Power Projects (P) Ltd. and Ratle Hydroelectric Power Corporation Limited.
In Kishtwar, Rs 2.33 crore has been incurred under CSR by CVPPL, while Rs 12.87 crore has been approved under LADF for four under-construction power projects. Of this, Rs 5.092 crore has so far been incurred on local area development activities.
The government said these interventions are being implemented under applicable CSR guidelines and rehabilitation and resettlement plans approved by the J&K Government, with the stated objective of addressing developmental needs in project-affected and surrounding areas.
The Dulhasti Power Station also incurred Rs 3.57 crore in CSR expenditure during 2024-25 and Rs 5.99 crore during 2025-26, taking its expenditure to Rs 9.56 crore over the two years. The spending covered education, health and sanitation, skill development, rural development and community infrastructure.
On the government’s commitment to provide 200 units of free electricity to economically weaker households, the department said a scheme based on installation of 2-kW rooftop solar systems under the RESCO mode has been initiated and is at the final tendering stage. Bids have been opened and are under evaluation, with implementation to follow completion of the prescribed tendering and related formalities.
The department said total power generation capacity in the UT stands at 3,540.15 MW across 31 projects. Of this, NHPC accounts for 2,250 MW from six projects, JKPDCL for 1,197.4 MW from 13 projects, 57.50 MW from five projects allotted by JKPDCL to independent power producers, and 35.25 MW from seven projects allotted by the Jammu and Kashmir Energy Development Agency.
The government also said the new J&K Hydropower Policy-2026 is presently under examination and inter-departmental consultation.
On the delay in releasing the 10 per cent UT share of subsidy under the PM Surya Ghar: Muft Bijli Yojana, the department said the subsidy is released after completion of budgetary, administrative and verification formalities, including validation of rooftop solar installations.
As of the date of the reply, Rs 10.50 crore had been disbursed as the UT share of subsidy to eligible beneficiaries after verification, including Rs 5 crore by Jammu Power Distribution Corporation Limited and Rs 5.50 crore by Kashmir Power Distribution Corporation Limited. The remaining UT subsidy, the government said, is under verification and will be released after completion of the prescribed formalities.
