Srinagar, March 26, 2025 – The Jammu and Kashmir government has reported a robust #power revenue of ₹2347Cr, underscoring the region’s growing energy sector potential. Amid this achievement, authorities have unveiled plans for several #major hydroprojects aimed at tapping into J&K’s rich water resources, with significant developments on the horizon, according to a recent government statement.
However, not all projects are progressing smoothly. The 93 MW New #GanderbalHydelProject, a flagship initiative in the #pipeline, is grappling with persistent #tendering hurdles. Sources indicate that the project has been stalled by a series of setbacks, including the default of the original Engineering, Procurement, and Construction contractor and a lackluster response to the tendering process launched in 2020 during the COVID-19 pandemic. More recently, concerns over the project’s financial viability have added to the delays, as cheaper renewable energy alternatives challenge the economic case for hydroelectric ventures.
A senior official from the J&K Power Development Department remarked, “While we’ve made strides in revenue generation, the rising costs and competition from other renewables are forcing us to rethink our approach to #hydroprojects.” The government is now pinning its hopes on a forthcoming hydro policy from the Government of India, which promises enhanced financial support to revive stalled initiatives like Ganderbal.
The #JK administration emphasised that the success of the 93 MW project depends heavily on the funding secured under this new policy, a decision that will emerge from ongoing discussions with central authorities. As the region balances its energy ambitions with economic realities, the outcome of these efforts could shape the future of hydropower in J&K.