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The Indian government has approved the Dulhasti Stage-II Hydro Electric Project (260 MW) to be developed by NHPC Limited, the Ministry of Power informed the Rajya Sabha on Wednesday.

The Central Electricity Authority (CEA) approved the project’s Detailed Project Report on 26 May 2025, and Environmental Clearance was granted on 7 January 2026. Forest clearance is not required as the project does not involve forest land.

The NHPC Board of Directors approved the investment on 20 February 2026. The project will be completed in 44 months.

NHPC will execute the project on a Build-Own-Operate-Transfer (BOOT) basis under a memorandum of understanding (MoU) signed with Jammu & Kashmir Power Distribution Corporation Limited (JKSPDCL) on 3 January 2021.

The existing Dulhasti Power Station (390 MW), commissioned in April 2007, generates revenue through power sales at tariffs set by the Central Electricity Regulatory Commission (CERC).

According to the ministry, a significant share of the revenue from the existing project is used to cover operation and maintenance (O&M) expenses, debt servicing and other financial obligations, while NHPC’s earnings are limited to the Return on Equity (RoE).

The government also stated that private land acquisition for the Stage-II project is being carried out under the provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLARR Act). All eligible benefits will be provided to Project Affected Families (PAFs) under the applicable rehabilitation and resettlement scheme.

In the case of the existing Dulhasti Power Station, employment opportunities have already been provided to affected families, and no cases related to pending job commitments remain, the minister informed the Upper House.

The Stage-II project is expected to improve power generation capacity in the region while benefiting from operational synergy with the existing Dulhasti facility.