Revenue vs. Development: A Closer Look at Sewa-II Hydropower Project

The Sewa-II hydropower project in Jammu and Kashmir has amassed Rs 3,674 crore in revenue since its start in July 2010, the government disclosed to the Assembly on Tuesday. This comes amid concerns over a lack of direct investment in local area development from this financial windfall.

Chief Minister Omar Abdullah explained that the National Hydroelectric Power Corporation Limited (NHPC), which operates the 120 megawatt facility, has contributed Rs 32 crore to the Local Area Development Fund (LADF). However, no portion of the revenue has been directly funneled into local development initiatives.

Instead, infrastructural projects are funded via the Union Territory's capital expenditure budget. Abdullah highlighted that 1 percent of the project’s revenue, along with 12 percent in free power allocation, aids in controlling electricity costs for consumers. In total, the state benefits from 13 percent free power facilitated by NHPC, a boon for the local power supply.