Ans-II project stalled for lack of funds

Excelsior Correspondent

SRINAGAR, Sept 29: The Government today said the 23-MW Ans-II Small Hydroelectric Project in Reasi has remained stalled mainly due to the non-availability of financial assistance from the Centre.

Replying to a question by Reasi MLA Kuldeep Raj Dubey in the Legislative Assembly, the government said the project was started by the Jammu and Kashmir State Power Development Corporation Limited (JKSPDC) in 2016-17 under the Prime Minister's Development Package (PMDP)-2015.

The government said the Detailed Project Report (DPR) was prepared in 2019 and received techno-economic clearance, but the tendering process was cancelled in January 2022 as the required funding commitment from the Government of India was not received.

It said the original DPR estimated the project cost at Rs 353.10 crore at 2018 price levels, while the estimate mentioned in the Assembly question was Rs 365.87 crore.

The government said J&K had repeatedly approached the Ministry of New and Renewable Energy (MNRE) seeking 60 per cent financial assistance under PMDP-2015, but no assistance had been released so far.

It said IIT Roorkee, engaged by MNRE, recommended in November 2024 that the project capacity be reduced to 16 MW, with an estimated cost of Rs 366.67 crore at 2022 price levels, for consideration of financial assistance.

The government said land acquisition proceedings were started in 2021 and a Social Impact Assessment was also undertaken. Several statutory and departmental no-objection certificates related to the Indus Water Treaty, geology, power, irrigation and pollution control have also been obtained.

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However, it said work on the remaining clearances, land acquisition, relief and rehabilitation measures and retendering could not proceed due to the lack of formal financial sanction and release of funds by MNRE.

The government said the JKSPDC Board decided at its meeting on June 23, 2026, to develop Ans-II through the EPC mode.

It said JKSPDC is now examining the Ans-II project along with the upstream Ans-I project to make better use of the available hydropower potential.

The government said a consultant would be engaged to prepare the DPR for Ans-I, comprising two 20-MW stages, and revise the Ans-II DPR in line with the IIT Roorkee assessment.

It said the project is expected to generate clean and reliable power and create direct and indirect employment and livelihood opportunities in the remote and mountainous areas of Reasi.

The government said the project would be taken forward in a time-bound manner, subject to the revised DPR, statutory clearances, land acquisition and rehabilitation requirements, and availability of the required financial assistance.