The continued absence of a clear roadmap for the new hydropower policy underscores a deeper structural problem in governance and execution in Jammu and Kashmir. The initial announcement by Government last year had generated expectations that the UT would finally move towards systematically harnessing its long-projected hydropower potential of over 20,000 MW. However, the complete silence on the policy in the 2026-27 Budget speech and Economic Survey reflects a troubling pattern-grand announcements followed by prolonged inertia in implementation. For decades, successive Governments have highlighted J&K’s hydropower capacity as the backbone of its future economic self-reliance. Yet the reality remains starkly different. While central public sector undertakings continue to generate substantial revenues from major hydroelectric projects in the region, local Government-owned departments and corporations have struggled to replicate similar success. This imbalance exposes a persistent gap between policy intent and institutional capability on the ground.
The restructuring of the erstwhile PDD into multiple corporations was expected to improve efficiency, accountability and financial performance. However, tangible improvements remain limited. High aggregate technical and commercial losses, weak billing efficiency and poor revenue realisation continue to erode financial viability. In such a fragile fiscal environment, the Government finds itself poorly positioned to undertake or finance large hydropower investments independently. This financial and operational weakness appears to have forced a gradual shift in focus from mega hydropower projects to smaller and even non-hydroelectric renewable initiatives. While diversification is strategically sound, it cannot substitute for a comprehensive hydropower expansion strategy in a region naturally endowed with river resources. Agencies such as the Jammu and Kashmir Energy Development Agency may facilitate small-scale projects, but they cannot alone transform the sector’s macroeconomic contribution.
Equally concerning is the inability to attract private investment at scale. Hydropower development requires long gestation funding, regulatory clarity and predictable policy stability. The prolonged delay in finalising the new policy, despite the completion of stakeholder consultations, sends discouraging signals to potential investors. Policy uncertainty often translates directly into capital flight or investment hesitation. The initial policy announcement created optimism that structural bottlenecks would finally be addressed. However, the absence of any reference in subsequent fiscal documents has revived doubts about political and administrative resolve. Unless hydropower development is pursued with sustained focus and execution discipline, the region’s vast energy potential will remain a statistic in official documents rather than a driver of economic transformation for J&K.
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