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Home Top News

Govt likely to dole out IPP policy soon

LCT Desk by LCT Desk
June 25, 2025
in Top News
Reading Time: 2min read
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Riyaz Bhat

Srinagar, Jun 24: The Jammu and Kashmir government has drafted a Independent Power Producer (IPP) policy of Small Hydro Power (SHP) and Large Hydro Power (LHP) project and is likely to be rolled out soon to attract the private power producers.
A top official informed, “The government has drafted a new policy titled Independent Power Producer (IPP) policy to attract the private power producers from across the country for setting-up of private hydro power projects that will be given on lease for forty years.”
“Discussions have been done and a draft of the policy has been finalized. The final policy is likely to be rolled out soon for the public,” the official said.
The official further said that “There will be two types of projects. One category, Small Hydro Power (SHP) projects will comprise power plants up to 25 Megawatts and another category is of Large Hydro Power (LHP) projects that will cover all above the 25 MWs to 100 MWs of projects.”
It also said that in accordance with the draft policy, it will cover all the hydro power projects from 0-100 MWs.
“All the SHP projects (Up to 25 MWs) will be funded and governed by the Ministry of Renewable Energy and the LHP projects (above 25 MWs) will come under the domain of the Ministry of Power for Government of India,” the official said.
Earlier, the government reviewed the draft Jammu and Kashmir Hydro Power Policy 2025, emphasising the Union Territory’s significant potential in hydropower generation and its role in economic development.
The officials had said that the draft policy aims to attract private investment in hydropower generation by revising the existing framework. It proposes categorising hydroelectric projects into two segments: Small Hydroelectric Projects (up to 25 MW) and Large Hydroelectric Projects (above 25 MW and up to 100 MW).
The Jammu and Kashmir Energy Development Agency (JAKEDA) has been designated as the nodal agency for projects up to 10 MW, while the Jammu and Kashmir Power Development Corporation Limited (JKPDCL) will oversee the projects above 10 MW.
Pertinently, the government in ‘Draft Hydropower Policy 2022’ had said, “Jammu & Kashmir is bestowed with an estimated hydro-power potential out of which 14,867 MW has already been identified by Central Electricity Authority.”
“While so far only 3,505 MW (~23 % of estimated potential) has been exploited, the achievement with respect to harnessing of small-hydropower (up to 25 MW) has been particularly dismal,” it reads.
It also said that the objective of this policy Draft Hydropower Policy 2022’ is to lay down a framework for optimum harnessing of hydropower resources of the J&K, particularly the small hydropower, and at the same time to promote entrepreneurship and private sector investment so that hydropower can be promoted as an attractive economic enterprise while enhancing the availability of cheap and clean electric power for the J&K.

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