Blue Gold Rising: How hydropower is powering Jammu and Kashmir’s future

Mohammad Hanief
Jammu and Kashmir, known for its rivers that cut through lofty mountains and deep valleys, possesses a hydropower potential unmatched in most parts of India. This natural advantage, often called the Union Territory’s “blue gold,” is finally beginning to receive the attention it deserves. As the country moves toward a green energy future, Jammu and Kashmir stands poised to play a defining role in India’s renewable power landscape.
Hydropower has long been recognized as the cornerstone of Jammu and Kashmir’s energy economy. Recent data indicates that the region has an estimated hydroelectric potential of nearly 18,000 megawatts, of which about 14,867 megawatts have been identified as feasible for development. However, only around 3,540 megawatts-just under a quarter of that potential-have so far been harnessed. This imbalance between available resources and realized capacity reflects both the vast opportunity and the persistent challenges that have shaped the region’s power sector for decades.
The rivers of the Union Territory-chiefly the Chenab, Jhelum, Ravi, and parts of the Indus-carry enormous energy within their fast-moving currents. The Chenab basin alone holds the majority of the region’s hydropower potential, flowing through Kishtwar and Doda, areas that have now become the focal points of new development. At present, Jammu and Kashmir has roughly 3,540 megawatts of installed hydropower capacity, generated through central, state, and private sector projects. Of this, nearly 2,250 megawatts are under the National Hydroelectric Power Corporation (NHPC), around 1,200 megawatts are managed by the Jammu and Kashmir Power Development Corporation, and a smaller portion comes from independent power producers. Major plants like Baglihar, Dulhasti, Salal, Uri, Kishanganga, and NimooBazgo form the backbone of the region’s power generation system.
Despite this infrastructure, Jammu and Kashmir continues to face energy deficits, particularly during winter when water levels drop and demand peaks. Electricity demand has been steadily rising, with per capita consumption increasing from 1,322 units in 2020-21 to over 1,530 units in 2023-24. Total annual consumption has exceeded 20,900 million units, while generation lags far behind, forcing the administration to import electricity from the northern grid at a significant cost. The economic implications are immense, as the purchase of imported power drains valuable financial resources that could otherwise be invested in local generation capacity.
In response, the administration has launched an aggressive push to expand hydropower capacity. As of 2025, five major hydropower projects with a combined capacity of about 3,090 megawatts are under construction across the Union Territory. These include the PakalDul, Ratle, Kiru, Kwar, and Parnai projects-most of them concentrated in the Chenab basin. Together, they represent a decisive step toward doubling Jammu and Kashmir’s generation capacity in the next few years. PakalDul, the largest of them, is progressing toward completion with more than two-thirds of its physical work done, while the Kiru and Kwar projects are advancing at steady rates. Ratle, a long-delayed project, has finally been revived under a joint venture between the government and NHPC, symbolizing renewed institutional confidence in large-scale hydropower development.
Beyond these ongoing projects, the government has unveiled an ambitious pipeline of 15 additional hydropower schemes totalling about 7,768 megawatts. These include Sawalkote, Kirthai-II, Bursar, and Dulhasti-II, among others. When realized, they will collectively transform Jammu and Kashmir into a power-surplus territory, capable of not only meeting its own demand but also exporting surplus electricity to other states. Smaller hydropower and mini-hydel projects are also being encouraged under the Independent Power Producers model, supporting decentralized energy generation and local employment.
This expansion is not merely about producing more electricity-it is about redefining the economic landscape. Hydropower has the potential to make Jammu and Kashmir self-reliant, reduce dependence on costly imports, and create thousands of skilled and semi-skilled jobs. It can drive industrial growth, improve infrastructure, and enhance revenue for the territory’s exchequer. With the right policies, hydropower can become the backbone of a green and sustainable regional economy.
However, the road to this transformation is not without obstacles. The Himalayan terrain presents unique geological challenges, and many projects face delays due to difficult working conditions, environmental clearances, and funding constraints. Seasonal fluctuations in river discharge, particularly during the winter months, affect generation levels. Climate change introduces further uncertainty, altering precipitation patterns and affecting river flows. Moreover, large hydropower projects often raise ecological and social concerns related to biodiversity loss, displacement, and landscape alteration. Addressing these challenges requires careful planning, transparent governance, and active community participation.
Despite these hurdles, progress on the ground reflects a clear change in momentum. The partnership between the Jammu and Kashmir administration and NHPC has emerged as a key driver of this new phase of development. The adoption of joint venture models has reduced financial risks and ensured access to technical expertise. Meanwhile, technological improvements in tunnelling, dam construction, and environmental mitigation are helping to minimize the ecological footprint of large projects. The emphasis on mini and micro-hydel projects also indicates a balanced approach-one that combines large-scale power generation with localized, sustainable solutions.
The strategic dimension of hydropower in Jammu and Kashmir cannot be overlooked either. The region’s rivers, governed by the Indus Waters Treaty, represent not only natural resources but also geopolitical assets. Optimal utilization of these waters for power generation strengthens India’s rights under the treaty while ensuring that Jammu and Kashmir benefits fully from its natural endowments. Hydropower thus serves both economic and national interests, linking local development to broader questions of resource sovereignty and regional stability.
As India advances toward its national goal of achieving net-zero carbon emissions by 2070, the role of hydropower as a clean, renewable, and reliable energy source becomes increasingly crucial. Unlike solar and wind, hydropower provides round-the-clock stability and can balance the fluctuations of other renewables. For Jammu and Kashmir, this convergence of natural advantage and national priority offers an unprecedented opportunity.
If the current pace of development is maintained, Jammu and Kashmir could add more than 3,000 megawatts of new capacity within the next three years and potentially reach close to 10,000 megawatts of installed capacity before the end of the decade. This would mark a historic shift from power scarcity to energy self-sufficiency. The dream of illuminating every home and powering every industry in the region could soon be realized.
The rivers that carve through Jammu and Kashmir’s mountains are more than scenic wonders-they are engines of transformation. With political will, technological capacity, and environmental responsibility working in tandem, hydropower can become the foundation of a new economic era. The future of Jammu and Kashmir, it seems, will not only flow through its rivers but also be powered by them.

editorial article
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