Chowdhary Mohammad Ramzan Presses Centre for Timeline on Return of Power Projects to Jammu & Kashmir

Chowdhary Ramzan Seeks Timeline on Return of Hydropower Projects to J&K | Parliament Debate

By: Javid Amin | 15 December 2025

An Old Question Returns to Parliament

The long-standing debate over ownership, control, and revenue rights of Jammu & Kashmir’s hydropower projects returned to the national spotlight after Rajya Sabha Member of Parliament Chowdhary Mohammad Ramzan sought a clear and time-bound commitment from the Central Government on when these projects would be handed back to the Union Territory.

Raising the issue in the Upper House of Parliament, Ramzan questioned whether decades of cost recovery and revenue generation by central public sector undertakings, particularly the National Hydroelectric Power Corporation (NHPC), had not already fulfilled the financial rationale behind central ownership. His intervention revived a politically sensitive and economically consequential issue that has shaped Centre–J&K relations for over five decades.

The Core Demand: A Timeline, Not Assurances

01. What Chowdhary Ramzan Asked

Chowdhary Mohammad Ramzan’s parliamentary question was precise in intent:

• When does the Central Government plan to return ownership of hydropower projects located in Jammu & Kashmir?

• Have the capital costs already been recovered through decades of power generation and revenue collection?

• Why is there no publicly declared timeline, despite repeated assurances over the years?

His argument rested on the principle that natural resources located within a region should primarily benefit its people, especially when the original justification for central takeover—high capital costs and technical complexity—has long since been neutralised.

02. The Centre’s Response: Procedural, Not Substantive

The reply from the Ministry of Power avoided committing to any timeline. Instead, the government reiterated that:

• Ownership and operation of projects are governed by existing Memorandums of Understanding (MoUs) and legal agreements.

• Any transfer would have to adhere strictly to these contractual frameworks.

Notably, the response did not clarify:

• Whether project costs have been fully recovered.

• Whether surplus revenues have exceeded original investments.

• Whether discussions are underway to revisit legacy agreements.

This non-committal stance has drawn criticism from regional leaders and energy policy observers alike.

Background: Why NHPC Controls J&K’s Hydropower

01. Historical Context

Most major hydropower projects in Jammu & Kashmir were conceived between the 1960s and 1980s, when the region lacked:

• Capital for large dam construction

• Technical expertise for Himalayan hydropower

• Transmission infrastructure to evacuate power

As a result, projects were handed over to central public sector undertakings, primarily NHPC, under agreements that allowed the Centre to recover costs through long-term operation.

Over time, however, these projects became steady revenue-generating assets, while J&K continued to face chronic power deficits, particularly during winter months.

02. Projects at the Centre of the Debate

Key NHPC-operated projects include:

• Salal

• Dul Hasti

• Uri-I and Uri-II

• Kishanganga

Together, these projects generate thousands of megawatts annually, yet J&K’s free power share remains limited, reinforcing perceptions of structural imbalance.

Energy Autonomy: The Larger Political and Economic Argument

01. What Energy Autonomy Means for J&K

Energy autonomy is not merely about ownership—it is about:

• Revenue control

• Grid planning authority

• Tariff rationalisation

• Local employment generation

Returning hydropower projects would enable J&K to:

• Reduce its dependence on expensive power purchases

• Channel revenues into local infrastructure

• Stabilise electricity supply for households and industries

02. Fiscal Implications

Despite being resource-rich, Jammu & Kashmir:

• Purchases power at high market rates during winter

• Bears significant subsidy burdens

• Loses potential long-term revenue from centrally operated projects

Local ownership could substantially improve the fiscal health of the Union Territory, particularly at a time when development spending needs are rising.

The Nichanhama-Rajwar Lignite Project: A Forgotten Chapter

01. A Project Abandoned by Conflict

Beyond hydropower, Chowdhary Ramzan also raised concerns about the Nichanhama-Rajwar lignite project in Handwara, initiated in 1989.

The project was shelved due to:

• Escalating militancy

• Security concerns

• Lack of sustained investment

Decades later, the site remains unused, symbolising lost industrial opportunity in north Kashmir.

02. Why Revival Matters Now

Reviving the lignite project could:

• Diversify J&K’s energy mix

• Create direct and indirect employment

• Support local industries in Kupwara and surrounding districts

Ramzan asked whether the Centre had conducted any fresh feasibility or environmental assessments—a question that remains unanswered.

Stakeholder Perspectives

Political Significance in a Post-Article 370 Era

01. Renewed Scrutiny of Centre–UT Relations

Since the reorganisation of Jammu & Kashmir in 2019, resource governance has become a more sensitive issue. Parliamentary interventions like Ramzan’s highlight:

• Persistent regional aspirations for economic self-determination

• Growing demand for transparency in Centre-UT financial arrangements

• The challenge of balancing national energy strategy with local rights

02. Symbolism Beyond Megawatts

Hydropower projects are not just infrastructure assets; they are symbols of control, trust, and federal balance. For many in J&K, their continued central ownership represents unfinished economic justice.

Legal and Policy Constraints

01. Are MoUs Immutable?

While the Centre argues that MoUs govern ownership, legal experts note that:

• MoUs are renegotiable, especially when underlying assumptions change

• Cost-recovery clauses often lack transparency

• Public interest considerations can justify revision

The absence of periodic public audits has further weakened confidence.

02. The Case for Independent Review

Policy analysts have suggested:

• Independent financial audits of NHPC-operated projects

• Transparent disclosure of recovered costs and surplus revenues

• Structured roadmap for phased transfer or enhanced revenue sharing

Why the Issue Matters Nationally

01. Federalism and Resource Rights

The debate resonates beyond J&K:

• Other resource-rich states closely watch how the Centre handles such demands

• Sets precedent for energy federalism

• Impacts trust between regions and the Union government

02. Aligning with India’s Energy Transition

As India moves toward a cleaner energy future:

• Hydropower remains a strategic asset

• Local stakeholder support is critical for long-term sustainability

• Ignoring regional concerns could slow project execution and acceptance

Bottom-Line: A Question of Time, Trust, and Transparency

Chowdhary Mohammad Ramzan’s demand for a clear timeline on the return of hydropower projects is not merely procedural—it is fundamentally about economic justice, political accountability, and regional confidence.

While the Centre’s reliance on existing agreements may be legally sound, the absence of clarity risks deepening perceptions of imbalance. As Jammu & Kashmir undergoes rapid infrastructure expansion, resolving legacy issues around energy ownership could serve as a confidence-building measure with long-term dividends.

Until then, the question remains unanswered in Parliament—and unresolved on the ground: when will Jammu & Kashmir truly regain control over the power generated from its rivers?