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TrueNorth Capital

15th Jul 2025 · SEBI-Registered Analyst

Govt focuses on Hydro Projects in J&K

NHPC
has been tasked by the central government to accelerate hydropower project completion in Jammu and Kashmir following India’s suspension of the Indus Waters Treaty. With the treaty in abeyance, NHPC can now develop storage-based projects with enhanced reservoir capacity and low-level sluice gates, previously restricted under the treaty. The focus includes notable projects like Sawalkot, Ratle, and Pakal Dul, aimed at fully tapping the Indus basin’s 32.32 GW hydro potential—of which 15.55 GW is operational and 4.8 GW under construction. Union Power Minister Manohar Lal emphasized the vast untapped hydropower capacity in J&K and urged the state government to resolve bottlenecks delaying NHPC projects. Former NHPC CMD Abhay Kumar Singh highlighted strategic importance in developing storage-capacity projects across the region to bolster energy security and irrigation. NHPC’s efforts are critical as hydropower currently contributes about 9% to India’s total power generation. The estimated investment needed to complete the remaining 12 GW capacity is around ₹1.2-1.5 trillion.

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