In a remarkable development, Jammu & Kashmir Govt is reviewing its Hydro policy to assess whether the Hydro Electric Power Projects (HEPs) are still viable. As per sources, this is for the first time that the Govt is discussing the viability of generating hydro power.

An empowered committee led by the Chief Secretary has started this discussion by calling for an “approach paper” that will give an overall picture of the hydropower industry in India. Top sources in the State Power Development Corporation (SPDC), a government-owned company, told Kashmir Reader that the empowered committee wants to lay a roadmap for power generation in the state. “It will reflect the vision of the government. It will give the picture of hydropower generation in India, its rates, market, demand and supply. It will also lay down a roadmap for large power projects,”

The approach paper will be part of a new hydropower policy which will be submitted before the same committee, and then before the cabinet for approval. The SPDC had submitted a hydro policy draft in April last year, which was returned to it in December. Sources said the approach paper has to be submitted in two months’ time.

At present, India has a surplus generation of hydropower, which has plummeted its rate. This has led to losses for SPDC as it invested in projects whose generation costs were high. The blunt example is that of the 450-MW Baglihar II. SPDC has failed to lure any buyer for more than a year as its selling cost of per unit of energy, Rs 4.4, is nearly Rs 2 higher than the market rate. The SPDC has finally managed to sell the power at about Rs 4 per unit to the Uttar Pradesh government but for one year only. The SPDC may have to struggle again next year if the state of UP does not continue the contract.

Another example is that of Nimuno Bezgo, and Chutak hydropower projects, which sell energy at Rs 13 per unit. The SPDC also buys power from Dulhasti project at Rs 7, when the available rates for power in the market is around Rs 2 and Rs 4. https://kashmirreader.com/2018/02/02/cs-led-panel-to-lay-roadmap-for-power-generation-in-jk/ (Kashmir Reader. 2 Feb. 2018)

As per another report, facing a growing demand for electricity and unable to tap its vast potential for generating hydroelectric power, the state government is looking to boost solar power generation. Given the long gestation period of hydel projects, it is unlikely the generation of hydroelectric power will expand significantly in the near future, said. Hence,  the focus on solar power. Indeed, when solar power potential exists, with lower installation and operation costs and impacts, why States continue after destructive, expensive hydro projects? https://scroll.in/article/866058/kashmir-can-generate-a-lot-more-hydel-electricity-than-it-requires-why-is-it-eyeing-solar-power (Scroll.In, 30 Jan. 2018)

There is one more interesting hydro power development in which the state cabinet of Bihar has approved closing 3 and cancelling the development of 2 others in addition to handing over of 8 hydropower projects to neighboring Jharkhand.