Jammu and Kashmir has tapped less than a quarter of hydropower potential

The Jammu and Kashmir Economic Survey reveals that the region has harnessed only 23.81 percent of its estimated 18,000 MW hydropower potential. Efforts are underway to double the capacity through four major projects expected to be completed by 2028. Improvements in power supply, including smart metering, are progressing rapidly under government schemes.

The Jammu and Kashmir Economic Survey 2025-26, tabled in the assembly on Thursday, highlights the region's underutilized hydropower potential. Of the estimated 18,000 MW capacity, over 14,000 MW has been identified, but only 3,540.15 MW is operational across 31 projects. This includes 1,197 MW in the state sector, 2,250 MW in the central sector, and 92.75 MW under independent power producers.

To double the capacity, four major projects are under development: the 1,000 MW Pakal Dul, 850 MW Ratle-II, 624 MW Kiru, and 540 MW Kwar, with a combined 3,014 MW, slated for completion by 2028.

Electricity tariff revenue rose to Rs 4,908 crore in 2024-25. Under the Prime Minister's Development Package (PMDP) and Revamped Distribution Sector Scheme (RDSS), smart metering is advancing swiftly. As of January 14, 2026, 5.25 lakh smart meters were installed under RDSS against a 14.07 lakh target, and 6.46 lakh under PMDP against 6.86 lakh.

Transmission capacity reached 34,839 MVA and line length 1,76,601 circuit kilometers by November 2025, a 44 percent increase since 2020. Transmission and distribution losses remain a key challenge for achieving 24x7 power supply. There are 24.59 lakh electricity connections as of November 2025. Per capita consumption grew at a CAGR of 2.15 percent over nine years, from 1,171 kWh to 1,488 kWh, with total units rising from 15,225 million to 20,830 million.

Renewable energy is progressing, with the Jammu and Kashmir Energy Development Agency allotting 56 mini hydel projects totaling 147 MW, of which seven with 35.25 MW are commissioned. Under PM Surya Ghar Bijli Yojana, 7,125 government buildings were solarized against a 22,494 target, and 16,799 households against 83,550, adding 131 MW to capacity. The government aims for reliable 24x7 supply to meet demand and export surplus for revenue.

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Illustration of the 16th Finance Commission report release, highlighting balanced tax shares for southern states and reforms like power privatization.
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16th finance commission balances southern states' concerns and equity

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The 16th finance commission has released its recommendations for 2026-2031, retaining states' share in the divisible tax pool at 41 percent. Southern states' allocation has risen from 15.8 percent to 17 percent, while emphasizing privatization of the power distribution sector and debt cleanup. The commission urged states to discontinue off-budget borrowings and rationalize subsidy schemes.

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