Peanuts from Power Projects


Hydro-electricity or commonly known as the hydropower is the leading source of renewable energy. It provides more than 97% of all electricity generated by renewable sources. The main advantage of hydro systems is elimination of the cost of fuel. Hydropower on a small-scale is in most cases “run-of-river”, with no dam or water storage, and is one of the most cost-effective and environmentally benign energy technologies to be considered both for rural electrification in less developed countries and further hydro developments in developed countries.

In our part of the world, the hydro-electricity potential is quiet rich. Despite about 20,000 MW of the Hydro Electric Power potential of the State, only a small fraction of it has been harnessed so far. J&K State is one of the potential regions for generation of power through Hydro electric rotor, significant river basins of State having large potential of power generations of power include Indus and its tributaries, Jhelum and its tributaries, Chenab and its tributaries; as well as Tawi and other  water resources.

The another grave issue is that Kashmir according to voices has got just peanut share from the power projects as every time the state government  has raised the demand for the return of the power projects from the National Hydroelectric Power Corporation, it has got a snub from the government of India. The successive union power ministers have openly talked against the return of the projects, as agreed upon by ruling the PDP and BJP, in their Agenda of Alliance. Voices have also stated that  the projects undertaken by NHPC have significantly longer project execution period which depresses the equity returns during the construction period. The longer execution period coupled with regulated tariff for all the projects limits the potential upside on equity and  possibly lead to increase in project costs and tariff from these projects. Even top NHPC officials have in the past talked against the idea to give back the projects.


Advocate Nazir Malik, while talking toNews Kashmir  stated – “State especially the valley of Kashmir has got peanut share from the power projects generated from its  water resources .Take example of recent Kishengaga project which got Constructed at the cost of Rs 4,000 crore, the project that began in 2009, The HCC constructed this project on behalf of National Hydro Power Corporation. The memorandum of understanding was brazenly violated as the promised development of roads, giving public health care institutes to Bandipora was never implemented and the local populace just got peanuts. On environmental side, one is already aware that HCC has been no less than a catastrophe for the serenity of Bandipore. It is a well-known veracity that HCC diverted the chemically polluted water into the nearby beautiful and important streams of the area thus polluting Madhumati River, which is the main water source for whole Bandipore Township, and adjoining villages and all this has continuously made local population horrified. The lush green forest cover to was vandalized . The compensation that company had to ensure in lieu of this disaster has never been given

The realities call for the government to ensure state gets due share of its power projects .