The NHPC Limited is moving forward with the development of the Dulhasti Stage-II Hydro Electric Project (260 MW) after receiving key regulatory approvals and investment clearance.
According to the government, the existing Dulhasti Power Station was developed by NHPC through a combination of equity and loans or market borrowings. Since its commissioning in April 2007, revenue from the project has been generated through the sale of electricity at tariffs determined by the Central Electricity Regulatory Commission (CERC) in line with applicable tariff regulations.
A significant portion of the project’s revenue is used to cover operation and maintenance (O&M) costs, debt servicing, and other financial obligations, while NHPC’s earnings from the project are limited to Return on Equity (RoE).
The Central Electricity Authority (CEA) approved the Detailed Project Report (DPR) for the Dulhasti Stage-II Hydro Electric Project on 26 May 2025. The project subsequently received environmental clearance on 7 January 2026, while forest clearance was not required as the project does not involve forest land.
Further advancing the project, the Board of Directors of NHPC Limited granted investment approval on 20 February 2026. The construction timeline for the project is estimated at 44 months.
The execution of the Dulhasti Stage-II project will be carried out by NHPC on a Build-Own-Operate-Transfer (BOOT) basis. This arrangement follows a Memorandum of Understanding (MoU) signed between NHPC and Jammu and Kashmir Power Development Corporation Limited (JKSPDCL) on 3 January 2021. The decision was taken considering operational efficiency, cost effectiveness, economies of scale, and the need to ensure synergy with Dulhasti Phase-I.
The acquisition of private land for the project is being undertaken in accordance with the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, which provides compensation, rehabilitation, and resettlement benefits to affected families.
The government also noted that project-affected families (PAFs) associated with the existing Dulhasti Power Station have already been provided employment opportunities, and there are currently no pending cases related to job allocation for affected households.
The information was shared by Shripad Yesso Naik, Minister of State in the Ministry of Power, in a written reply in the Rajya Sabha.
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