NHPC Limited has approved an investment of approximately ₹5,702.91 crore for two new hydroelectric power projects in the Union Territory of Jammu & Kashmir. The decision, cleared by the company’s Board of Directors, covers the Uri-I Stage-II Hydroelectric Project (240 MW) and the Dulhasti Stage-II Hydroelectric Project (260 MW), together adding 500 MW of renewable capacity to the national grid, subject to final agreements with the state authorities.
The Uri-I Stage-II project involves an estimated investment of ₹2,708.95 crore, while the Dulhasti Stage-II project is pegged at around ₹2,993.96 crore. Both cost estimates include Interest During Construction (IDC) and expenditure on enabling infrastructure, highlighting the scale and complexity of the developments.
The approval marks a significant step in NHPC’s strategy to strengthen its hydroelectric portfolio, which remains central to India’s renewable energy mix. Hydropower plays a critical role in grid stability and peak demand management, complementing variable sources such as solar and wind. The new projects are expected to reinforce NHPC’s contribution to national energy security and clean energy goals.
NHPC already has a strong operational presence in Jammu & Kashmir, including the existing Uri-I and Dulhasti power stations. The proposed Stage-II developments are designed to build on this established infrastructure and operational experience, potentially enabling smoother and more efficient execution once construction begins.
From an industry perspective, peers such as SJVN Limited are also expanding their renewable and hydro portfolios, while diversified utilities like NTPC continue to broaden their energy mix. Against this backdrop, NHPC’s focused investment underlines its intent to consolidate leadership in the hydroelectric segment.
The project approvals remain contingent on the signing of implementation agreements with the Government of Jammu & Kashmir and/or JKSPDC, along with receipt of all statutory and regulatory clearances. Any delays in these processes or unforeseen geological and construction challenges could affect timelines and costs. Market participants are expected to closely track progress on agreements and the start of on-ground execution over the coming quarters.
