What Happened
- According to the Economic Survey 2025-26, Jammu and Kashmir has harnessed only 3,540 MW — approximately 24% — of its identified hydropower potential of 14,867 MW.
- The Union Territory has an estimated total hydropower potential of 18,000 MW, of which 14,867 MW has been formally identified and assessed.
- J&K currently has 31 operational hydropower projects; NHPC operates six projects totalling 2,250 MW and JKPDC manages 13 projects totalling 1,197.40 MW, with the remaining 92.75 MW developed by Independent Power Producers (IPPs).
- Four major projects totalling 3,014 MW are under construction and expected to be completed by 2028: Pakal Dul (1,000 MW), Ratle-II (850 MW), Kiru (624 MW), and Kwar (540 MW).
- When these projects are commissioned, J&K's hydropower capacity will effectively double from current levels.
Static Topic Bridges
India's Hydropower Potential and Development Constraints
India has one of the world's largest untapped hydropower potentials, concentrated in the Himalayan states and union territories. The Central Electricity Authority (CEA) estimates India's total hydropower potential at approximately 1,45,320 MW at 60% load factor, of which only about 46,928 MW had been developed as of recent assessments.
- India's total assessed hydropower potential: approximately 1,45,320 MW (CEA estimate).
- Himalayan states — J&K, Himachal Pradesh, Uttarakhand, Sikkim, Arunachal Pradesh — account for the bulk of untapped potential.
- Hydropower is classified as renewable energy under India's energy policies; projects above 25 MW count toward renewable purchase obligations.
- Key barriers: ecological sensitivities, displacement of communities, geological challenges, long gestation periods (8-12 years typically), and international treaty constraints.
- India's National Hydroelectric Policy 2008 and the subsequent Hydro Purchase Obligation (HPO) were introduced to incentivise development.
Connection to this news: J&K's 24% utilisation rate mirrors the broader national pattern of large untapped potential, with the Economic Survey highlighting the gap as a policy priority for energy self-sufficiency.
Indus Waters Treaty and Hydropower Restrictions in J&K
The Indus Waters Treaty (IWT), signed in 1960 between India and Pakistan with World Bank mediation, allocates the six Indus basin rivers between the two countries. The treaty significantly constrains India's hydropower development in J&K, as the western rivers (Indus, Jhelum, Chenab) — which flow through J&K and have the highest hydropower potential — are allocated to Pakistan for consumptive use.
- Signed: September 19, 1960; brokered by the World Bank.
- Eastern rivers (Beas, Ravi, Sutlej): allocated to India for unrestricted use.
- Western rivers (Indus, Jhelum, Chenab): allocated to Pakistan; India permitted limited non-consumptive uses, including run-of-the-river hydroelectric projects.
- India can build run-of-the-river projects on western rivers but with restrictions on pondage, dam height, and spillway design.
- The IWT has been a source of disputes: Pakistan challenged India's Baglihar (450 MW) and Kishanganga (330 MW) projects, and is contesting the Ratle project (850 MW) currently under construction.
- In April 2025, India announced it would hold the IWT in abeyance following a terror attack in Kashmir — first such suspension in the treaty's 65-year history.
Connection to this news: A significant portion of J&K's 76% untapped hydropower potential lies on the western rivers subject to IWT constraints, making the treaty a structural factor limiting how much of the 18,000 MW potential can realistically be developed without geopolitical complications.
J&K as a Union Territory — Energy and Development Context
Following the reorganisation of the erstwhile state of Jammu and Kashmir under the Jammu and Kashmir Reorganisation Act, 2019, J&K became a Union Territory with a legislature, and Ladakh became a separate UT without a legislature. This change altered the governance structure for energy policy in the region, bringing it under greater central government oversight.
- J&K Reorganisation Act, 2019: passed under Article 3 of the Constitution (Parliament's power to form new states/UTs).
- J&K is now a UT with a legislature; Ladakh is a UT without a legislature.
- Energy sector governance: J&K Power Development Corporation (JKPDC) operates state-sector projects; NHPC and NTPC handle central-sector projects.
- Central sector projects in J&K include NHPC's 6 projects (2,250 MW): Uri-I (480 MW), Salal (690 MW), Dul Hasti (390 MW), Sewa-II (120 MW), Nimmo Bazgo (45 MW), Chutak (44 MW).
- Economic Survey 2025-26: capacity set to double by 2028 with four under-construction projects.
Connection to this news: As a UT, J&K's energy infrastructure development is now more directly tied to central government priorities, explaining the Economic Survey's focus on the region's hydropower gap and the pipeline of centrally-supported projects.
Key Facts & Data
- J&K's total hydropower potential: ~18,000 MW
- Identified (assessed) potential: 14,867 MW
- Currently harnessed: 3,540 MW (approximately 24% of identified potential)
- NHPC-operated capacity in J&K: 2,250 MW (6 projects)
- JKPDC-operated capacity: 1,197.40 MW (13 projects)
- IPP-developed capacity: 92.75 MW
- Total operational projects: 31
- Under-construction pipeline (expected completion by 2028):
- Pakal Dul: 1,000 MW
- Ratle-II: 850 MW
- Kiru: 624 MW
- Kwar: 540 MW
- Combined: 3,014 MW (effectively doubling current capacity)
- India's total assessed hydropower potential (CEA): ~1,45,320 MW at 60% load factor
- IWT signed: September 19, 1960; World Bank-mediated