4 power projects in J&K face Rs 5,700 Cr cost overrun, time delays

Srinagar, Oct 12: Four major hydroelectric power projects in Jammu and Kashmir, with a combined sanctioned cost of Rs 27,944 crore, are facing a cost overrun of ₹5,738 crore and significant time delays, according to the latest Flash Report (August 2025) issued by the Ministry of Statistics and Programme Implementation (MoSPI).

The projects — Pakal Dul (1000 MW), Kiru (624 MW), Rattle (850 MW), and Kwar (540 MW) — are all being executed by the National Highways and Infrastructure Development Corporation Limited (NHIDCL). Each project, crucial for harnessing J&K’s hydroelectric potential, has missed its original completion deadlines, causing substantial financial escalation and delayed energy benefits.

According to MoSPI’s report, the Pakal Dul Hydroelectric Project, with a capacity of 1000 MW, was approved in February 2018 and was originally scheduled for completion in April 2020. The revised deadline now stands at December 2026. Its cost has surged from Rs 8,112 crore to Rs 12,728 crore, marking an escalation of Rs 4,616 crore. So far, Rs 7,283 crore has been spent, with 72% work completed.

The Kiru Hydroelectric Project, approved in March 2019, had an initial target completion date of September 2023, which has now been extended to December 2026. Its cost has increased from Rs 4,287 crore to Rs 5,409 crore, with a cumulative expenditure of Rs 3,157 crore till date, and the project is 68% complete.

Similarly, the Rattle Hydroelectric Project (850 MW), sanctioned in March 2021, was originally set for completion by February 2026, but the new deadline has been pushed to September 2029. The project cost remains pegged at Rs 5,281 crore, but progress has been slow — only 24% work has been completed, with an expenditure of Rs 1,009 crore.

The Kwar Hydroelectric Project, approved in May 2022, was initially targeted for completion by November 2026. The revised completion date is now March 2028, with a total cost of Rs 4,526 crore. As of August 2025, Rs 1,119 crore has been spent, and the project stands 23% complete.

The MoSPI Flash Report provides monthly updates on infrastructure projects valued at Rs 150 crore and above, tracking progress and performance across various sectors. The latest findings underscore a worrying trend of time and cost overruns in Jammu and Kashmir’s power sector, which could delay the region’s goal of achieving energy self-sufficiency.

Officials attribute the delays to difficult terrain, logistical challenges, and administrative bottlenecks; however, experts warn that prolonged execution timelines will continue to inflate costs and impact downstream power supply targets.

“The situation calls for strict monitoring, accountability, and faster decision-making. J&K has enormous hydropower potential, but delays like these blunt its economic impact,” said an official familiar with the projects’ progress.