J&K set to create ripples with ‘hydropower tourism'
SRINAGAR: J&K's Omar-Abdullah-led government has started dipping its toes in 'hydropower tourism' with plans to allow hydel electricity generators to set up on-site tourism facilities as an incentive to attract more investors into such projects.
J&K's Draft Hydro Power Policy, 2025, proposes tourism infrastructure in hydel projects up to 25MW. A senior official said the infrastructure could include hotels, parks, guesthouses, and water sports facilities The draft policy, reviewed earlier this week by chief minister Omar, will soon be released for public feedback.
The policy assumes significance after the Centre put
Indus Waters Treaty
(IWT) with Pakistan in abeyance following the April 22 Pahalgam terror attack.
Omar's National Conference (NC) has long opposed IWT, calling it detrimental to J&K's interests and arguing that it ceded control of river waters to Pakistan without consulting the region.
Such tourism facilities will be allowed to be set up only after hydel projects up to 25MW go on stream. 'The policy clearly says after the main hydropower project is completed and begins operating, they can apply to build tourism infrastructure.
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The aim is to increase income and support local economic growth,' the official said.
The incentive has been limited for projects up to 25 MW as they typically come up on small streams and offer good tourism potential, while larger hydel plants are located on major rivers with little scope for ancillary amenities, the official explained. J&K has an estimated hydropower potential of over 20,000MW but less than 15% is harnessed.
Govt expects good response to the new policy. The official cited Ranjit Sagar Dam (also known as Thein Dam) at Pathankot in neighbouring Punjab as an example, pointing out that the area, with lush gardens and scenic surroundings, had turned into a popular picnic destination. 'J&K's upcoming hydropower projects offer similar tourism potential,' the official said.
While hydropower developers in J&K will be required to provide 12% of the generated electricity free to the Union territory under the new policy, the obligation will remain suspended during the initial years to ease the burden on developers.
Developers will be allowed to retain all tourism revenue from the start, without no sharing with govt. However, after 40 years, developers must hand over the 'hydel project' and 'all related tourism infrastructure in good operating condition' to govt.
The draft policy categorises projects into two segments, up to 25MW, and between 25MW and 100 MW. It proposes waiver of water usage charges for all projects, classifying them as 'non-consumptive users'. Developers will also benefit from carbon credit incentives and receive 100% exemption on registration fees and stamp duty on land purchases, leases, or mortgages related to the projects.
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