Jammu and Kashmir’s new Hydropower Policy, expected to be approved before the end of July, marks a decisive moment in the region’s long-stalled journey toward energy self-sufficiency. This policy could become a game-changer-not just for power generation, but also for irrigation, drinking water management, and economic stability. For a region that has historically struggled to meet its own electricity demands despite abundant hydro potential, this policy, if implemented effectively, could herald a long-overdue transformation. The most striking irony of J&K’s energy landscape is that while it possesses immense hydropower potential-estimated at over 20,000 MW-it remains perennially dependent on external supplies. The local generation has been far below par, and the minuscule share of electricity the UT receives from national hydropower projects barely scratches the surface of its growing demand. By the time the region receives its maximum allocated share, consumption requirements have already surged, rendering those allocations moot.
This scenario has been exacerbated by J&K’s limited financial capacity to initiate and execute mega hydropower projects on its own. Projects like the Chenab Valley Power Ventures, once seen as a panacea for regional energy woes, are still embroiled in procedural bottlenecks, legal scrutiny including CBI investigations, and bureaucratic hurdles. In this context, the Government’s decision to shift focus from mega-infrastructure to micro- and small-hydro projects seems both pragmatic and forward-thinking.
The new policy, by categorising hydro projects into two segments-small (up to 25 MW) and large (25-100 MW)-lays a clear framework. It allocates oversight responsibilities based on project size, with the Science and Technology Department managing projects up to 10 MW and the Power Development Department handling larger ventures. This decentralised and distributed model leverages departmental strengths, facilitating better monitoring, faster approvals, and tailored project execution. Private sector participation, emphasised in the policy, is another crucial element. By opening the door to private investment, the Government aims to bridge its financial shortfall while expediting development timelines. Mega hydropower projects often take over a decade to move from blueprint to production due to a host of complex challenges-environmental clearances, land acquisition issues, difficult terrain, climatic constraints, and long gestation periods. Micro and mini projects, by contrast, are less resource-intensive and quicker to commission, offering a viable short- to medium-term solution to J&K’s power shortages.
But the policy must also account for ground realities. Winter droughts and acute rainfall shortfalls drastically impact power generation. A robust strategy for water storage, management, and year-round generation should be embedded into the planning phase of these projects. Additionally, integration with irrigation and drinking water supply needs to be a key consideration, especially as these too face increasing stress across both the Jammu and Kashmir divisions. The composition of the policy review committee from different departments suggests that a multi-sectoral approach is being adopted. This is critical, as hydropower development cannot be seen in isolation from environmental sustainability, local livelihoods, and resource equity.
The long-standing issue of J&K’s marginalisation under the Indus Water Treaty also demands renewed attention. Despite being the primary host of major rivers, the region has had limited rights and returns from hydropower generation under the treaty’s restrictions. With the IWT in a state of abeyance and no covert hurdles expected from Pakistan in the future, the current policy window presents J&K with a rare opportunity to reclaim its water resources. Furthermore, J&K’s persistent demand for water usage charges on Central Hydroelectric Projects remains largely unaddressed. A clear and enforceable regional compensation should find a place in the new policy framework. This policy must correct systemic imbalances that have disadvantaged the region for decades.
The success of this new hydropower policy will depend not just on the paper it is written on but on the political will, administrative efficiency, and institutional cooperation that follows. If executed with vision and urgency, this could be the single most important step toward making Jammu and Kashmir energy self-sufficient, economically stronger, and environmentally resilient. The people of J&K deserve no less.
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