J&K Frames Draft Hydel Policy To Boost Private Investment

02 Apr 2026 CW Team

A draft J&K Hydel Policy 2025 has been framed to attract private investment in small hydropower projects and improve local socio-economic conditions, and the draft has been placed in the public domain for stakeholder feedback. The policy draws on earlier lessons and neighbouring best practices and seeks public comments. Officials expect it to stimulate investment and streamline delivery.

The policy emphasises small rivers and streams with private sector participation and mandates that independent power producers supply free power or pay royalty to Jammu and Kashmir after a specified commercial period, which should reduce electricity procurement costs. Officials said the suspension of the treaty removes the need for Pakistan's clearance and will speed up works. Efforts to identify potential storage projects have been intensified to maximise balanced hydropower use.

The Union territory is estimated to have hydropower potential of around 18,000 MW, of which 15,000 MW has been identified and 3,540.15 MW, representing 24 per cent, has been developed to date. This includes capacities aggregating 1,197.4 MW in the Union territory sector, 2,250 MW in the central sector and 92.75 MW in the independent power producer sector. Officials said the figures reflect both completed works and ongoing private participation.

The road map covers 3,063.5 MW from six under-construction hydroelectric projects and 4,507 MW from eight projects in tendering, award, detailed project report (DPR) or clearance stages, and around 100 to 150 MW is expected to be added by independent power producers. Officials said the pipeline and the draft policy are intended to accelerate harnessing of hydropower potential and promote local development.

Jammu and Kashmir has accelerated hydropower development and aims to triple installed capacity to 11,000 megawatt (MW) by 2035 after the suspension of the Indus Water Treaty following the Pahalgam attack last year. The Chief Minister Omar Abdullah informed the Legislative Assembly that a decade-long road map has been drawn and is under implementation. The plan seeks to expand generation and create local employment. A draft J&K Hydel Policy 2025 has been framed to attract private investment in small hydropower projects and improve local socio-economic conditions, and the draft has been placed in the public domain for stakeholder feedback. The policy draws on earlier lessons and neighbouring best practices and seeks public comments. Officials expect it to stimulate investment and streamline delivery. The policy emphasises small rivers and streams with private sector participation and mandates that independent power producers supply free power or pay royalty to Jammu and Kashmir after a specified commercial period, which should reduce electricity procurement costs. Officials said the suspension of the treaty removes the need for Pakistan's clearance and will speed up works. Efforts to identify potential storage projects have been intensified to maximise balanced hydropower use. The Union territory is estimated to have hydropower potential of around 18,000 MW, of which 15,000 MW has been identified and 3,540.15 MW, representing 24 per cent, has been developed to date. This includes capacities aggregating 1,197.4 MW in the Union territory sector, 2,250 MW in the central sector and 92.75 MW in the independent power producer sector. Officials said the figures reflect both completed works and ongoing private participation. The road map covers 3,063.5 MW from six under-construction hydroelectric projects and 4,507 MW from eight projects in tendering, award, detailed project report (DPR) or clearance stages, and around 100 to 150 MW is expected to be added by independent power producers. Officials said the pipeline and the draft policy are intended to accelerate harnessing of hydropower potential and promote local development.

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