Why Kashmir's power crisis despite resources and surplus generation?

Despite being a region rich in resources, Jammu and Kashmir is currently grappling with its worst power crisis in two decades, particularly during the harsh winter season. Despite having a surplus generation capacity, the power situation in Kashmir has reached a critical point that hasn’t been seen since 2004, when residents had to endure power outages lasting up to 18 hours a day.

The promises made by the J&K administration, which has been under the direct control of the central government since its demotion from a state to a Union Territory on August 5, 2019, have not been fulfilled.

Despite the majority of areas having smart meters installed, the power situation continues to worsen each day, causing difficulties for consumers. No one seems to be able to alleviate the worsening power situation. During the hot and humid summer season, there was some improvement in the power supply, but with the arrival of winter, power outages, both scheduled and unscheduled, have become a common occurrence, causing inconvenience to the public.

The Power Development Department (PDD) and power corporation had assured consumers that there would be an improvement in the power scenario. However, contrary to these assurances, the electricity situation has deteriorated. Consumers are now subjected to unscheduled power cuts, indicating that the power situation is chaotic and consumers are facing a severe electricity crisis.

What much power J&K is generating currently?

The paradox lies in the fact that Kashmir has an identified power generation potential of 16,475 MW but currently generates only 3,263 MW of electricity from 21 power projects. More than 85% of this comes from hydropower projects, the largest of which is the Baglihar project on the Chenab basin with an installed capacity of 900 MW.

So, why is a region with such abundant resources facing a power crisis? The answer lies in a combination of factors including coal shortages, an imbalance between supply and demand, and infrastructural issues.

Jammu and Kashmir is capable of producing 3188 MW of energy, is currently facing a severe power crisis. Despite the region’s ability to generate a surplus of nearly 900 MW of electricity from its 21 hydroelectric projects, it continues to experience significant power shortages.

Moreover, there is a significant imbalance between supply and demand. Overall, J&K has a requirement of about 2,600 MW of electricity. However, the power supply to the Kashmir division is 1200 MW while to Jammu is 900 MW. This leaves a deficit of about 500 MW.

Root cause

The root of the problem lies in several factors, primarily the unequal power-sharing agreements between Jammu and Kashmir and the National Hydro Projects Corporation (NHPC), a central government-owned company. These agreements only allocate a small percentage of the power generation for consumption within the state.

Despite producing a surplus of about 900 MW, Jammu and Kashmir is facing a deficit of 500 MW of power supply. There is, however, conflicting data regarding the energy demands of Jammu and Kashmir. Some official agencies state that the demand is as high as 4000 MW.

According to a recent report in the Indian Express, H Rajesh Prasad, the principal secretary of J&K’s Power Development Department said, Due to a prolonged dry spell, rivers in Jammu and Kashmir have less water flow, causing a drop in power generation. Initially at 1,050 MW, it fell to 700 MW by September and is now at 200-250 MW.

Another report mentions a record low of 50-100 MW in power generation. The Jhelum river's discharge is much lower than last year, exacerbating the power supply situation in the region, despite its ample resources for power generation.

No funds for small projects

According to a report by the Comptroller and Auditor General (CAG), no funds have been released for small projects in Jammu and Kashmir over the past five years. The report highlighted that the central government did not release funds for 20 sites proposed under the Prime Minister’s Development Package due to high project costs and unviable tariffs.

The report also pointed out a lack of coordination between nodal agencies and line departments/agencies, which resulted in delays in obtaining clearances, approvals, and finances for the projects. Furthermore, the projects’ execution was not adequately monitored.

Independent Power Producers (IPPs) cited the lack of financing by banks due to the non-availability of a buyback agreement with the J&K government as a significant obstacle to project development.

The report also noted that the Jammu and Kashmir Power Development Corporation’s (JKPDC) failure to complete the transmission line alongside the commissioning of the Dah hydro project resulted in a loss of revenue of Rs 16.45 crore due to non-utilisation of power generation of 59.37 MUs.

Interestingly, three projects with a generation capacity of 12 MWs were selling power outside the Union Territory, contradicting the hydro policy’s objective of addressing energy problems in the remote and hilly areas of the Union Territory. The power demand in these areas was estimated at 4,217 MW (21,887 MUs) by the end of 2021-22.

Kashmir hydropower projects and capacity

Jammu and Kashmir with an estimated capacity of 20,000 MW, which includes 1,500 MW for small hydro projects. However, as of October 2021, only 2,813.46 MW (16 percent) of this potential had been harnessed, which included 79.75 MW of small hydro projects.

The region has several hydroelectric projects. For instance, the Baglihar project on the Chenab basin has an installed capacity of 900 MW. Other projects include Sawalkote (1,856 MW), Kirthai I (390 MW), Kirthai II (930 MW), Pakal Dul (1,000 MW), Kwar (540 MW), Kiru (624 MW), Bursar (800 MW) in the Chenab basin, and the multi-purpose Ujh project (212 MW) in the Ravi basin. These projects have a total installed capacity of 6,352 MW.

Additionally, the Jammu Kashmir Power Development Corporation (JKSPDC) runs 21 power projects, producing 1137.68 MW. The private sector contributes an additional 42.5 MW through four projects. The National Hydro Power Corporation (NHPC) generates 2,009 MW from seven projects.

Despite the significant potential and existing projects, the region is still facing a power deficit, indicating the need for more efficient utilization of its resources.

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