J&K’s Rivers Must Become a Source of Prosperity for Every Household

Irshad Mushtaq

drm757@gmail.com

Jammu & Kashmir is blessed with some of India’s greatest river systems, immense mountains and extraordinary hydropower potential. Yet, for many families, this natural wealth has not fully translated into reliable electricity, lower bills, better incomes, local jobs or stronger public services.

This is the central question before Jammu & Kashmir: if our rivers generate power, why should our people continue to feel powerless?

Government data show that J&K has an estimated hydropower potential of around 18,000 MW, with 14,867 MW identified for development. However, only about 3,540 MW has been harnessed so far. This means just 23.81 percent of the identified hydropower potential has been utilised, while 76.19 percent remains untapped.

In simple terms, J&K has developed less than one-fourth of the electricity potential already identified in its rivers. The remaining potential is not merely a number on paper. It represents future employment, revenue, affordable electricity, better roads, stronger local businesses and a possible new source of dignity for families living in remote mountain districts.

The Income Reality

J&K’s per-capita income for 2025–26 is estimated at about Rs 1.68 lakh. Himachal Pradesh’s per-capita income is estimated at around Rs 2.84 lakh.

This means the average per-capita income in J&K is roughly 40.7 percent lower than in Himachal Pradesh. Himachal’s per-capita income is around Rs 1.15 lakh higher per person than J&K’s.

No single sector can close this gap. Tourism, horticulture, handicrafts, agriculture, roads, education, health care, industry and entrepreneurship all matter. But hydropower is one sector where J&K has a natural advantage that few regions can match.

J&K’s real economic growth for 2025–26 is estimated at 5.82 percent, while Himachal Pradesh reported real growth of about 8.3 percent. Faster growth in income-producing sectors is therefore essential if J&K is to give its young population better employment and business opportunities.

A Wealth Waiting to Be Used

Most of J&K’s identified hydropower potential is concentrated in the Chenab basin, which alone accounts for 11,283 MW—nearly 76 percent of the total identified potential. The Jhelum basin has 3,084 MW, while the Ravi basin accounts for 500 MW.

These figures show that districts and communities around the Chenab, Jhelum and Ravi are not on the margins of development. They are at the centre of J&K’s future energy economy.

The J&K Hydro Power Policy 2025 provides a framework to develop around 7,000 MW of hydropower over the next decade, with indicative investment of about Rs 59,294 crore. This is a major opportunity, but it must not be reduced to announcements, foundation stones and press releases. It must become an accountable development programme with clear timelines, local benefits and public disclosure.

Power Must Benefit Local People

Hydropower projects use J&K’s land, rivers, roads and communities. People living near these projects face construction disruptions, environmental pressure, land acquisition concerns, traffic, noise and uncertainty. They deserve more than temporary promises.

Every major project should deliver visible and measurable benefits to the people of J&K, especially to affected families and districts.

The government should establish a transparent Hydro Public Benefit Fund. Every rupee earned through free-power entitlement, water-use charges, upfront premium, dividends, lease income and other hydropower-related receipts should be shown publicly, project by project.

A defined share of this revenue should be used for affordable power, roads, hospitals, schools, drinking water, skill training, digital connectivity, tourism facilities and local enterprise. Residents must be able to see how much their rivers earn and where that money is spent.

The Hydro Power Policy 2025 provides for free power from private hydro developers, generally capped at 12 percent of energy generated. This free-power entitlement should be treated as a public asset. The value of every free unit received by J&K should be disclosed annually and used in a way that directly benefits households and public services.

Free Electricity Is a Public Right

Free or subsidised electricity is already being provided by several state governments and Union Territories. The purpose is not to encourage wasteful consumption; the purpose is to protect poor and middle-income families from the burden of essential household electricity.

Himachal Pradesh provides zero electricity bills for domestic consumption up to 125 units per month. It has also restored subsidy support for consumers in the 126–300-unit consumption range.

Punjab provides up to 300 free units of electricity per month to eligible domestic consumers under its state policy.

Delhi provides free electricity up to 200 units per month for domestic consumers, with subsidised support for the next consumption slab.

Karnataka’s Gruha Jyothi scheme provides up to 200 free units per month for eligible domestic households, linked to scheme conditions and past consumption.

Tamil Nadu provides 100 free units of electricity for domestic consumers.

Jammu & Kashmir has approved a targeted initiative to provide **200 units of free electricity per month to eligible Antyodaya Anna Yojana families**. The programme is intended to cover around 2.23 lakh of the poorest households in the Union Territory. This is a welcome and humane beginning, because electricity is no longer a luxury—it is needed for light, heating, cooking support, education, mobile charging, communication and small household livelihoods.

The 200-free-unit commitment should reach every eligible AAY household without delay, confusion or unnecessary paperwork. A clear public list of eligibility conditions, district-wise beneficiary coverage, installation status and grievance process should be made available.

From AAY Relief to Wider Relief

J&K should begin with its approved commitment: 200 free units each month for every eligible AAY household. This must be fully funded, transparently implemented and protected from delays.

Once new hydropower projects begin generating power and the UT’s revenue share rises, J&K can gradually widen electricity relief.

The next stage can provide a low-cost lifeline tariff for low-consuming non-AAY households, including workers, pensioners, widows, small shopkeepers and families with limited income. Later, a hydro-dividend model can offer a small electricity bill credit to ordinary domestic consumers, funded from verified recurring income from J&K’s water resources.

This must be financially responsible. Free power should not be financed through hidden losses, unpaid bills or unsustainable borrowing. It should be linked to actual hydro revenue, lower power-purchase costs and better collection efficiency.

Jobs Must Stay in J&K

Hydropower development can create employment in engineering, tunnelling, transport, construction, surveying, food supply, accommodation, security, maintenance, information technology and local contracting. But employment benefits must not remain temporary or go mainly to outside agencies.

Each project should publish the number of local workers employed, the value of contracts given to J&K businesses, the number of youth trained and the permanent jobs created after commissioning.

Young people from Kishtwar, Doda, Ramban, Reasi, Ganderbal, Baramulla, Kupwara and other potential project areas should receive skill training and genuine opportunities. Their future should not be limited to watching power lines pass over their homes while jobs and benefits go elsewhere.

Faster Projects, Honest Monitoring

Hydropower projects often face difficult terrain, geological challenges, landslides, flash floods, environmental clearances, land acquisition issues and rehabilitation concerns. These are genuine challenges in a Himalayan region. But delays and cost overruns cannot become permanent excuses.

Every major hydro project should have a public dashboard showing the original cost, revised cost, expected completion date, physical progress, employment created, local-area works, rehabilitation progress and the estimated value of free power due to J&K.

The public has a right to know whether a project is progressing, whether costs are rising, and whether promised benefits are reaching people.

Renewable Power for Every Region

Large hydro projects take time. Therefore, J&K should simultaneously expand rooftop solar, solar power for government buildings, hospitals, schools, colleges, panchayat institutions and small businesses, as well as micro-hydro and decentralised energy systems in remote locations.

Government records show that rooftop solar capacity in J&K has reached about 75 MW under different schemes and sectors. Since difficult terrain and limited flat land make large solar parks challenging, rooftop and decentralised solar can help households, public institutions and remote communities reduce dependence on costly power supply.

Conclusion

Jammu & Kashmir’s rivers should not only generate electricity for grids; they should generate hope for households. The people of J&K deserve to see their natural resources reflected in lower bills, reliable supply, better incomes, local employment, stronger schools, quality hospitals and improved roads.

With only 23.81 percent of its identified hydropower potential harnessed, J&K has a historic opportunity before it. The remaining 76.19 percent must be developed carefully, responsibly and transparently—not only to add megawatts, but to create a real public benefit.

The immediate duty is clear: implement the approved 200 free units of electricity for eligible AAY families across J&K. The larger goal should be equally clear: build a transparent hydro-revenue system through which every major project contributes to household relief, project-area development, local jobs and a stronger economy.

J&K’s water is its wealth. That wealth must first strengthen the lives of the people of Jammu & Kashmir

*Irshad Mushtaq* is a Jammu & Kashmir-based financial educator, columnist and founder of *M I Securities*, committed to advancing financial awareness and social responsibility among the public. Through articles, outreach and investor-education initiatives, he encourages families, youth and first-time earners to save regularly, avoid fraud and debt traps, build financial discipline, and plan for education, healthcare, emergencies and old-age security.

His work supports public-interest priorities such as financial inclusion, investor protection, youth empowerment, digital-finance awareness and self-reliance**. By complementing government-led efforts on financial literacy and inclusive development, he aims to help build a financially aware, responsible and economically stronger Jammu & Kashmir.