J-K’s ‘power’ struggle: Row erupts over ‘handing over’ of hydel projects to NHPC

However, the ruling National Conference has denied that this is a fresh handover and emphasised that these decisions were in 2020-21, prior to the NC government being in power.

Under the terms of the MoU, J&K is entitled to over 12% of the electricity generated from NHPC-operated projects. The rest is transferred to the power grid from which the J&K government buys at market rates to bridge the energy deficit. “In 2006, Prime Minister Manmohan Singh set up working groups on Jammu and Kashmir on economic development led by former Reserve Bank of India Governor C. Rangarajan. The group recommended the transfer of Dulhasti and Bursar projects to Jammu and Kashmir, but the request was not heeded,” Para said.

However, the NC said, “The proposal for implementation of these projects through NHPC on BOOT basis emanates from the decision of the Board of Directors of JKSPDCL in its 76th meeting held on 27.10.2020. Subsequently, a Memorandum of Understanding (MoU) was signed between JKSPDCL and NHPC on 03.01.2021 at Jammu, during a period when there was no elected government in place.”

It also said that the present stage pertains to the finalisation of the Implementation Agreement (IA), which has been arrived at after detailed deliberations between JKSPDC and NHPC during 2025-26, “ensuring alignment with the provisions of the MoU and safeguarding of J&K’s interests”.

A sub-committee was also formed under the NC government in 2011 to examine the terms under which hydroelectric projects were shifted to NHPC. The panel recommended the development of the Uri-II project by the state government after the ownership transfer. Blaming the PDP government for taking “no concrete steps” to operationalise the said recommendations or to secure transfer/restructuring of NHPC projects, the NC said that consequently, “the policy direction evolved during the period of LG administration, and a decision was taken in 2020-21 to implement new projects through NHPC on BOOT basis, culminating in the MoU dated 03.01.2021.”

Naveed Iqbal is a Senior Assistant Editor at The Indian Express, and reports from Jammu and Kashmir. With a career spanning over 15 years in frontline journalism, Naveed provides authoritative reporting on the region’s transition, governance, and the socio-political implications of national policies. Expertise Regional Specialization: Based in the Srinagar and New Delhi bureaus, Naveed has spent over a decade documenting the unique challenges of Jammu and Kashmir. Her reporting is distinguished by deep contextual knowledge of the region's post-Article 370, statehood debates, and local electoral politics. Key Coverage Beats: Her extensive body of work covers: Politics & Governance: Tracking the National Conference (NC), PDP, and BJP dynamics, including in-depth coverage of J&K’s first Assembly sessions and Rajya Sabha polls following the reorganization of the state. Internal Security & Justice: Providing rigorous reporting on counter-insurgency operations, terror module investigations, and judicial developments involving political detainees and constitutional rights. Education & Minority Affairs: Highlighting systemic issues such as quota rows in J&K, public service commission reforms, and the challenges faced by minority communities. ... Read More

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