Jammu, Feb 9: The Jammu and Kashmir government on Monday informed the Legislative Assembly that the Union Territory has 32 operational hydropower projects with a total installed capacity of 3,540.15 megawatts (MW) across Jammu and Kashmir.
In a written reply to a starred question raised by MLA Khurshied Ahmad and tabled in the House by the Minister in charge of the Power Development Department, the government said that of the total operational capacity, 13 projects with a combined capacity of 1,197 MW fall under the Central Sector, six projects with a capacity of 2,250 MW are in the State Sector, while 13 projects with an aggregate capacity of 72.75 MW are operated by Independent Power Producers (IPPs).
However, the government noted that one of the projects has faced prolonged delays due to non-performance by the IPP. A notice of default was issued to the IPP in August 2025, following which the Detailed Project Report (DPR) and financial analysis were submitted.
The financial assessment indicated that the project would require a 40-year levelised tariff of ₹7.30 per unit, making it technically and economically unviable under prevailing market conditions.
The IPP has sought an exit from the project along with a refund of the deposited premium, citing external factors and policy-related constraints. The matter is currently under consideration by the Jammu and Kashmir Power Development Corporation Limited (JKPDCL) in accordance with the provisions of the implementation agreement and the Hydroelectric Power Policy, 2011, the government added. (Agencies)
