When the Union Government informed Parliament that Jammu and Kashmir required 20,040 million units of electricity in 2023–24 — and managed to secure 19,763 million units — the figures appeared reassuring at first glance. A shortfall of just 1.4 per cent suggests near adequacy in supply. Yet behind these numbers lies a deeper structural concern: the region’s growing dependence on externally controlled power and its limited authority over local energy generation.
Meeting demand is only one aspect of energy security. Who produces the electricity, who controls the infrastructure, and who benefits economically from it are equally crucial questions. For a region with enormous hydropower potential, Jammu and Kashmir remains largely reliant on power purchases and centrally managed projects, leaving local governance with little room to shape its own energy future.
This dependence carries both financial and developmental consequences. Buying electricity from outside the region places sustained pressure on public finances, contributing to mounting fiscal strain already acknowledged in the latest Budget. High power procurement costs ultimately filter down to households, industries and public services, weakening economic competitiveness and burdening ordinary consumers.
Ironically, Jammu and Kashmir’s rivers and mountainous terrain offer ideal conditions for hydropower — particularly small and medium projects that can be developed with limited ecological disruption and faster timelines. Such projects could supply local grids, reduce transmission losses and provide reliable power to remote areas often facing outages.
However, decision-making authority over most major power initiatives remains concentrated with Union-controlled agencies. While large projects may serve national objectives, they often bypass local priorities, environmental sensitivities and revenue retention for the region itself. Small power projects under regional administration could change this equation.
Locally managed energy infrastructure would create multiple benefits. It would generate employment in construction, maintenance and technical services. Revenue from power generation would stay within Jammu and Kashmir, strengthening public finances and reducing dependence on external assistance. Most importantly, local control would allow planners to respond swiftly to seasonal demand fluctuations and regional development needs.
Read more | Why Kashmir exports power despite shortages
Energy autonomy is not a political slogan; it is an economic necessity. Regions that control their power resources enjoy greater industrial growth, investment confidence and fiscal stability. For Jammu and Kashmir — where tourism, horticulture, handicrafts and small industries depend heavily on uninterrupted electricity — reliable local generation could transform productivity and livelihoods.
The recent data presented in Parliament should therefore not be read merely as a supply success story. It should be a wake-up call to address the structural imbalance between consumption and local production. Almost meeting demand through purchased power is neither sustainable nor economically wise in the long term.
Small and medium hydropower projects offer a practical path forward. They require lower capital investment than mega dams, involve fewer displacement concerns, and can be operational within shorter timeframes. Many Himalayan states have already demonstrated how decentralised energy models can strengthen regional economies while protecting fragile ecosystems.
For this to succeed, Jammu and Kashmir must be granted greater administrative and financial authority over such projects. Transparent frameworks, environmental safeguards and community participation can ensure development without ecological harm. Public-private partnerships could further accelerate progress while maintaining local oversight.
Energy security today determines economic resilience tomorrow. As the region charts its development roadmap, power generation must shift from dependency to self-reliance. Central assistance can remain supportive, but control over small and medium projects should rest with local institutions that understand ground realities.
Kashmir’s rivers should not merely flow past missed opportunities. Harnessed wisely under regional stewardship, they can power homes, industries and a more stable economic future.
Meeting electricity demand is important — but owning the means to meet it is essential.
Watch | Understanding Kashmir’s Power Crisis