The Sewa-II hydropower project in Kathua has generated Rs 3,674 crore in revenue since July 2010. While NHPC operates the project, no direct expenditure on local area development has been met from this revenue.
The Jammu & Kashmir government informed the Assembly that the 120 MW Sewa-II Hydroelectric Project in Kathua district has generated Rs 3,674 crore in revenue since its commissioning in July 2010. Chief Minister Omar Abdullah shared the details in a written reply to a question raised by MLA Dr Rameshwar Singh.
The Chief Minister stated that the project, located in Kathua’s Mashka area, is operated and maintained by NHPC. He noted that since July 2010, NHPC has earned Rs 3,674 crore from the project and has paid Rs 32 crore towards the Local Area Development Fund (LADF).
Abdullah clarified that no direct expenditure from the project’s revenue has been allocated specifically for local area development. He added that infrastructure works in the region are being funded through the Union Territory’s capital expenditure budget.
He further explained that the 1% LADF contribution and the 12% free power provided by NHPC, forming part of the 13% free power allocation, are being used to meet Jammu & Kashmir’s power purchase costs. This mechanism helps ensure electricity supply to consumers at reasonable rates.
