Jammu and Kashmir has been reaping rich benefits from the hydropower projects of NHPC in the last five years. The state has generated a revenue of Rs 5,537 crore from the projects which have proved the rich water potential of J&K that has made it a revenue generating state.
The details of the amount received by the state from the projects were recently laid before the assembly.
The amount received by the state from the projects is a combination of Rs 3,582 crore as water usage charges and the equivalent of Rs 1,955 crore in free power and the Local Area Development (LAD) Fund, the indirect benefits are no less important.
The 13 percent free power being given to Jammu & Kashmir is being used to offset the cost of power purchase for meeting the load sum of the state.
Having these projects has a lot of indirect benefits. The setting up of these projects have created lots of jobs apart from the indirect employment that they generate. Moreover, the company spends around Rs 19 crore a year on corporate social responsibility in the host areas.
The indirect economic gains in terms of employment generation and the development of local enterprises and the ancillary service sector in addition to direct benefits such as free power and water usage charges and taxes and duties that accrue to the Union Territory of Jammu & Kashmir.
The implementation and operation of such projects is a continuous chain of economic activities which contribute to employment generation and the development of local enterprises and strengthening of the ancillary service sector.
The state has been reaping rich benefits in terms of revenue and indirect gains by harnessing their waters for power generation.
With new projects like Sawalkote hydel project coming up and expansion of existing projects like Uri and Dulhasti, the state is all set to march towards a brighter and more prosperous future.
