J&K’s 3,000 MW hydro pipeline faces mounting delays and cost overruns
Four major hydroelectric projects under development in Jammu & Kashmir have witnessed substantial schedule delays, with two projects also reporting significant cost escalations, according to information provided by the Ministry of Power in response to a parliamentary question.
The ministry stated that the 1,000 MW Pakal Dul Hydro Electric Project (HEP), 624 MW Kiru HEP, 540 MW Kwar HEP and 850 MW Ratle HEP are facing delays ranging from more than a year to nearly seven years. Combined cost overruns for Pakal Dul and Kiru exceed Rs 5,700 crore, while no cost escalation has been reported for Kwar and Ratle.
Project status
Among the four projects, Pakal Dul has recorded the largest increase in project cost and the longest delay.
Originally approved at Rs 8,112 crore with a scheduled completion date of April 2020, the 1,000 MW project is now expected to be completed by March 2027 at an anticipated cost of Rs 12,728 crore. This represents a cost overrun of Rs 4,616 crore and a delay of nearly seven years.
The ministry attributed the delay to litigation during the tendering stage, disruptions caused by the Covid-19 pandemic, a major slope failure at the Adit Tunnel site of the Tunnel Boring Machine (TBM), labour unrest, delays in the handover of encumbrance-free land, and agitations by local residents and Project Affected Families (PAFs).
The 624 MW Kiru HEP was sanctioned at Rs 4,288 crore and was originally scheduled for completion in September 2023. It is now expected to be completed in March 2027, with the anticipated project cost rising to Rs 5,409 crore.
The resulting cost overrun of Rs 1,121 crore has been attributed to the Covid-19 pandemic, flood-related road damage, local disruptions, labour strikes and delays in the supply of components for the project’s dam tower crane from overseas suppliers.
Delayed schedules
The remaining two projects have not reported any cost escalation but are expected to miss their original completion timelines.
The 540 MW Kwar HEP, approved at Rs 4,526 crore, was initially targeted for commissioning in November 2026. The project is now expected to be completed by March 2028.
According to the ministry, delays in awarding hydro-mechanical (HM) and electro-mechanical (E&M) packages, coupled with labour-related disruptions, have affected construction progress.
Similarly, the 850 MW Ratle HEP, sanctioned at Rs 5,282 crore, has seen its expected completion date revised from February 2026 to November 2028.
The ministry cited flooding of diversion tunnels due to high monsoon discharge, breaches of project dykes, restrictions on blasting activities near inhabited areas, labour strikes and land-related issues involving local residents as the principal causes of delay.
Government response
The Ministry of Power stated that the cost escalations observed in the Pakal Dul and Kiru projects are attributable to external factors and natural causes rather than financial irregularities.
It clarified that no diversion of funds or expenditure under unrelated heads has been reported for any of the four projects. Consequently, project-wise statements regarding fund diversion or deviations are not applicable.
The ministry’s response indicates that the government continues to attribute delays in the Jammu & Kashmir hydro portfolio primarily to a combination of pandemic-related disruptions, geological challenges, weather events and local issues encountered during project execution.
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