The Azad State of Jammu & Kashmir is blessed with over 6000MW of hydropower resources. The first major project developed in the sixties was the 1000MW Mangla dam and reservoir which is generating between 4-5 billion units (kWh) per annum and has a reservoir storage of 7.4MAF.
The first private hydropower IPP, the 84MW New Bong Escape HPP was developed. financed, constructed and reached commercial operations on 23 March 2013 with the full support and backing of the PPC.
The Project was constructed on BOOT basis and would be transferred free of cost to the AJ&K after the 25 year term of which 2 years have already passed. The Project is paying water use charges to the AJ&K and to date over Rs 140 million has become due and substantially paid based on some 900 million units (kWh) generated and supplied to the Grid to date.
The sites in the AJ&K have the added advantage of being close to urban Load centers of Punjab and KPK. The Government of AJ&K gives top priority to hydropower development both in the private and public sectors and it with great satisfaction that we note some 3,500 MW is under development as IPP's out of the potential of 6000MW.