The Jammu & Kashmir (J&K) Government has approved a cabinet sub-committee report seeking buying back NHPC's three major power projects in the state.

In consultation with the state law ministry, the Power Development Corporation (PDC) has been asked to get the project value of the three projects. Three power projects that J&K government intends to takeover include 690-MW Salal, 480-MW Uri (1) and 390-MW Dulhasti. NHPC lacks basic ownership documents for Salal which has become a major issue in J&K politics. While the agreement that J&K signed with NHPC permits it to reclaim the Uri project and buy it back at depreciated cost, there is no such clause in the agreement on Dulhasti project.

The sub-committee has pointed out that the 2,000 MoU signed between NHPC and the state government over other seven projects has a clause ensuring buying back of the projects by the state. Barring 120-MW Sewa (2), these seven projects 330-MW Kishen Ganga, 240-MW Uri-II, 1020-Bursar, 1000-MW Pakul Dul, 45-MW Nemu-Bazgo and 44-MW Chutak are at various stages of implementation. The sub-committee has suggested the same return clause be retrospectively included on the three functional projects.