NHPC and JKSPDCL Sign Implementation Agreement for 500 MW Hydropower Projects in Jammu & Kashmir

On March 27, 2026, NHPC Limited and the Jammu & Kashmir State Power Development Corporation Limited (JKSPDCL) executed an implementation agreement in Jammu for the development of the Uri-I Stage-II and Dulhasti Stage-II hydroelectric projects. This procedural advancement formalizes the development of 500 MW of additional capacity and follows the principles established in the Memorandum of Understanding (MoU) signed on January 3, 2021. The proposal for these projects originated from the 76th meeting of the Board of Directors of JKSPDCL held on October 27, 2020. Construction for both schemes was scheduled for commencement from March 2026, subject to the finalization of this agreement and the acquisition of requisite statutory clearances.

Project Profiles and Specifications

The agreement encompasses two projects designed to enhance regional grid balancing and renewable energy output. Dulhasti Stage-II was allocated to NHPC to ensure operational synergy with the existing Stage-I project and to achieve economies of scale and scope.

Technical Specifications of Hydropower Projects

The financial outlay for Uri-I Stage-II is approved at ₹2,708.95 crore, which includes ₹264.31 crore for Interest During Construction (IDC) and ₹26.20 crore for enabling infrastructure. The Dulhasti Stage-II project investment is approved at ₹2,993.96 crore, comprising ₹289.06 crore for IDC and ₹245 crore for enabling infrastructure.

Operational Framework: The BOOT Model

Both hydropower projects are to be developed under the Build-Own-Operate-Transfer (BOOT) model. The specific terms of this framework include:

• Duration: A fixed period of 40 years of commercial operation following commissioning.
• Transfer: Handover of the projects back to the Government of Jammu and Kashmir after the 40-year term. The transfer must be free from all encumbrances and maintain specified generation capacity.
• Regulatory Compliance: Execution is subject to statutory clearances and alignment with the initial MoU dated January 3, 2021.

Power Allocation and Local Economic Provisions

The agreement details utility and revenue-sharing provisions between the executing agency and the Union Territory (UT) of Jammu & Kashmir:

1. Free Power Allocation: The UT of J&K is entitled to 12% free power from the projects as per extant policy.
2. Local Area Development: Allocation of 1% toward a Local Area Development Fund (LADF).
3. Purchase Rights: The Government of J&K holds the first right of refusal for the purchase of 50% of the generated power at prices determined by regulatory norms.
4. Employment Mandates: Requirement that 80% of new recruitment for Group C & D staff be residents domiciled in J&K. Of this 80% quota, 10% must be recruited specifically from Project Affected Families (PAF).

Regional Context and Operational Footprint

NHPC currently maintains a 2,250 MW operational footprint in Jammu & Kashmir. The addition of these projects supports the regional objective of tapping an estimated 18,000 MW of hydropower potential. The Union Territory administration has set a specific target to reach 11,000 MW of installed hydropower capacity by 2035.

The implementation agreement was signed by Rahul Yadav, Managing Director of JKSPDCL, and Anish Gouraha, Executive Director of NHPC.