Draft under consultation months after feedback deadline
Mohinder Verma
JAMMU, May 27: More than a year after the Jammu and Kashmir Government made a high-profile promise to unveil a new Hydropower Policy aimed at unlocking the Union Territory’s vast energy potential, the policy continues to remain in limbo, with no indication from the Government about when it will finally be notified or implemented.
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The ambitious announcement was made by Chief Minister Omar Abdullah while presenting the Budget for the Financial Year 2025-26 in the Legislative Assembly on March 7, 2025. Holding both the Power and Finance portfolios, the Chief Minister had then declared that the Government would introduce a new Hydropower Policy to accelerate project development, attract private investment and promote sustainable energy growth in Jammu and Kashmir.
The announcement had generated considerable expectations in official and industrial circles alike, particularly given Jammu and Kashmir’s enormous untapped hydropower potential. However, despite the passage of more than one year, the proposed policy has neither been finalized nor notified.
“The process of holding discussions with the stakeholders has yet not been completed by the Power Development Department, which had put in public domain the draft of the policy and invited comments and suggestions from stakeholders, experts, institutions and citizens within a period of one month from December 8, 2025”, official sources told EXCELSIOR.
Expressing inability to specify time-frame for the notification of the policy, sources said, “after completion of process of holding consultations with the stakeholders, the Power Development Department will have to carry out necessary modifications in the draft and thereafter the same will be placed before the Council of Ministers for approval”.
In the month of February this year, the Chief Minister, in his capacity as Minister Incharge of the Power Development Department, had, in reply to a question of BJP MLA, merely stated that draft Hydropower Policy had been prepared and placed in the public domain for stakeholder comments. However, no timeline was indicated for the policy’s finalization.
Sources pointed out that the prolonged delay reflects a larger governance pattern where major announcements made during Budget speeches often remain trapped in extended drafting and consultation stages without any firm implementation roadmap.
“Unless the Government moves beyond consultations and demonstrates decisive action, the promise of unlocking Jammu and Kashmir’s vast hydropower potential risks remaining confined to Budget rhetoric instead of translating into actual development on the ground”, they observed.
It is pertinent to mention that the Government of Jammu and Kashmir had earlier framed policies for hydropower development through the Independent Power Producer (IPP) mode in 2003 and again in 2011. However, in view of the mixed outcomes of previous policy measures and the growing viability challenges posed by cheaper renewable energy alternatives, the Government felt the need to revise the policy framework to make investment in the hydropower sector more attractive for private players.
“The revised Hydropower Policy is imperative for encouraging private sector participation in the development of hydroelectric projects up to 100 MW while simultaneously ensuring long-term energy security for Jammu and Kashmir at competitive tariffs”, sources said.
As per the draft, apart from power generation, the proposed policy is also expected to recognize the wider developmental benefits associated with hydropower projects, including improved grid stability, enhanced road connectivity and socio-economic upliftment of remote and inaccessible regions of the Union Territory.
The draft policy proposes classification of hydroelectric projects into two categories—-Small Hydroelectric Projects up to 25 MW and Large Hydroelectric Projects above 25 MW and up to 100 MW. While the Jammu and Kashmir Energy Development Agency (JAKEDA) is proposed to function as the nodal agency for projects up to 10 MW, the Jammu and Kashmir Power Development Corporation Limited (JKPDCL) is expected to oversee projects above 10 MW.
Jammu and Kashmir possesses an estimated hydropower potential of over 20,000 MW, yet only a small fraction has been harnessed so far. The proposed policy is aimed at providing a comprehensive framework for addressing long-pending issues relating to private participation, environmental and administrative clearances, rehabilitation mechanisms and revenue-sharing models.
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