Jammu & Kashmir, endowed with a vast network of rivers and streams, has long held potential as a significant contributor to India’s hydropower landscape. However, the Indus Water Treaty (IWT)-a historic accord signed between India and Pakistan in 1960-has imposed stringent restrictions on Jammu & Kashmir’s capacity to exploit this resource. Chief Minister Omar Abdullah, addressing the recent Conference of Power Ministers, importantly underscored the constraints that IWT places on the region, hindering its efforts to harness its hydropower potential fully. The main issue is the technical restrictions imposed by IWT on water storage and the type of power projects permitted on the western rivers allocated to Pakistan. The treaty mandates that India’s use of the waters of the Indus, Jhelum, and Chenab rivers be limited to “run-of-the-river” projects without significant water storage capacity. This restriction, while effective in preserving natural flows into Pakistan, severely impacts J&K’s ability to build large reservoirs that could store water during peak flows and release it in the lean winter months. As a result, the UT’s hydropower plants are forced to operate below optimal capacity in winter, precisely when the need for electricity spikes due to low temperatures. This seasonal fluctuation has significant social and economic repercussions, forcing the region to rely on costly power imports from other states and underscoring the need for an energy strategy that takes Jammu & Kashmir’s unique needs into account.
Jammu and Kashmir faces a unique set of challenges. Nearly four decades of terrorism have heavily impacted the region’s financial stability. The tourism sector, which is central to J&K’s revenue, has suffered, and the unrest has also hindered the growth of alternative revenue streams, such as industrialisation. Additionally, power agreements with the NHPC are skewed against J&K, requiring urgent reassessment. Given these circumstances, the region is not in a position to undertake large, inefficient running-water hydropower projects without financial support from the Central Government. While the constraints imposed by IWT are undeniable, there are pathways available to address the current imbalance. One viable solution is to provide special compensation to Jammu & Kashmir to offset the economic disadvantages the treaty imposes. Such support could take the form of viability gap funding or equity assistance A comprehensive policy shift that takes these constraints into account could transform J&K into a model of sustainable hydropower generation.
Additionally, enhancing accountability within PSUs like PESL and the NTPC is critical for ensuring the success of energy projects in the region. The CM’s request for central intervention in holding these organisations accountable for loss reduction projects under the Revamped Distribution Sector Scheme deserves immediate attention. Effective implementation of RDSS could be a game-changer for J&K’s power sector, facilitating the delivery of affordable and reliable electricity to the region.
Beyond hydropower, Jammu & Kashmir also holds significant potential in renewable energy, particularly solar power. Ladakh’s high-altitude landscape has proven conducive to large-scale solar power generation, which could become a complementary energy source for Jammu & Kashmir. Chief Minister Abdullah’s proposal for Jammu & Kashmir to purchase surplus energy from Ladakh is a creative solution to the region’s power scarcity. It is in line with India’s wider objectives for renewable energy. However, such an arrangement will require robust infrastructure to facilitate power transmission between the two regions and address logistical challenges inherent in operating at high altitudes.
While revising or renegotiating the IWT may be beyond immediate reach, financial support, in the form of grants or subsidies, could enable J&K to build more effective run-of-the-river projects that maximise available water flows, improve wintertime power generation, and enhance the region’s self-sufficiency. Investment in modern technology that optimises power generation despite flow limitations, coupled with infrastructure improvements under RDSS, would further help J&K unlock its hydropower potential. Despite IWT constraints, innovative approaches and supportive policies can pave the way for a cleaner, more resilient energy future in this vital border region.
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