Srinagar, Mar 09: Nearly two decades after the commissioning of the Dulhasti Hydroelectric Project in Kishtwar, the Centre has cleared the long-pending Dulhasti Stage-II project, even as questions over local employment, project benefits and revenue sharing continue to shadow hydropower development in Jammu and Kashmir.
Details accessed by Rising Kashmir show that the 260-MW Dulhasti Stage-II hydroelectric project has received key approvals in recent months, paving the way for its construction after years of delay.
According to the details, the Central Electricity Authority (CEA) cleared the Detailed Project Report (DPR) on May 26, 2025, while environmental clearance was granted on January 7, 2026. The board of NHPC Ltd approved investment for the project on February 20, 2026, with the construction timeline estimated at 44 months.
The project will be executed by NHPC Limited on a Build-Own-Operate-Transfer (BOOT) basis, following an agreement between NHPC and the Jammu and Kashmir State Power Development Corporation Limited (JKSPDCL) signed in January 2021.
It also said that the existing 390-MW Dulhasti Power Station, commissioned in April 2007, generates revenue through the sale of electricity at tariffs determined by the Central Electricity Regulatory Commission (CERC). However, a substantial portion of the revenue goes towards operation and maintenance costs, debt servicing and other financial obligations, with NHPC’s earnings limited to the return on equity (RoE) permitted under regulatory norms.
The details did not specify the total revenue earned from the project so far.
Hydropower projects in Jammu and Kashmir have historically been accompanied by demands from local communities for employment and rehabilitation benefits, particularly from families that gave land for these projects.
In its response, the government said that jobs had already been provided to project-affected families in the case of Dulhasti Stage-I and that there were currently no pending employment cases related to the project.
For the upcoming Stage-II project, the acquisition of private land will be carried out under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, and eligible families will receive benefits under the applicable rehabilitation and resettlement provisions.
The clearance of Dulhasti Stage-II comes after years of delays that have often characterised hydropower expansion in Jammu and Kashmir, a region estimated to have more than 20,000 MW of hydropower potential, much of which remains untapped.
Despite being one of India’s major hydropower hubs, the Union Territory continues to face power shortages during winter, when river flows decline and generation from hydroelectric stations drops sharply. Several major projects in the Chenab basin, including those in Kishtwar, have seen slow progress due to environmental clearances, financial constraints and administrative approvals.
With Dulhasti Stage-II now moving toward construction, the project is expected to add 260 MW of generation capacity, but questions remain over how much economic benefit and employment will ultimately accrue to local communities.
