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Shahpur Kandi Dam project: 1979 power pact with Punjab sovereign commitment, must be implemented, says CM Omar
The CM was responding to a supplementary question raised by Basohli MLA, Darshan Kumar, during question hour in the House regarding compensation, employment for locals, and J&K’s 20% share of electricity from the Ranjit Sagar Dam project
Chief minister Omar Abdullah on Thursday said that he will remind his Punjab counterpart to fulfil the commitments made with the Jammu and Kashmir Government regarding the Shahpur Kandi dam project, adding that the 1979 agreement between the governments of J&K and Punjab was a sovereign commitment that must be honoured in letter and spirit.
The CM was responding to a supplementary question raised by Basohli MLA, Darshan Kumar, during question hour in the House regarding compensation, employment for locals, and J&K’s 20% share of electricity from the Ranjit Sagar Dam project.
He informed the House that as per the 1979 agreement, J&K is entitled to 20% of the total power generated at Thein Dam and Shahpur Kandi Barrage at bus bar cost. “I will take up the matter. We will strive to ensure that the agreement signed in 1979 is implemented in letter and spirit,” he added.
A power sale agreement between PSPCL and JKPCL was signed on October 11, 2019, for the sale and purchase of power from the Ranjit Sagar Dam project. However, no power is currently being injected into J&K’s system due to lack of transmission infrastructure. The provisional tariff payable to PSPCL stands at ₹3.5 per kWh.
Omar also clarified that there is no proposal under consideration to provide subsidized or free electricity to consumers in the Basohli constituency, where the project is located.
On compensation to affected families, he said the total compensation amount stands at ₹85.48 crore, out of which ₹71.15 crore has been released by the Punjab Government, leaving a pending amount of ₹14.32 crore.
He added that ₹5.41 crore in interest accrued on earlier released funds was utilised by the deputy commissioner, Kathua, for land compensation, bringing the adjusted pending amount to ₹8.90 crore.
Further, he informed that ₹1.10 crore is to be paid as per various court orders, while pending interest as of September 30, 2025, stands at ₹27.02 crore, taking the total liability to ₹37.03 crore. Against this, ₹21.08 crore was received in 2020, leaving a balance of ₹15.94 crore in the compensation account. So far, ₹50.51 crore has been disbursed.
Explaining the delay in disbursement of full compensation, the CM said that non-submission of requisite documents by some landowners remains a major hurdle. These documents include compensation applications, bank account details, PAN cards and Aadhaar cards. He said that the Kathua DC has issued multiple public notices urging landowners to submit the required documents to facilitate timely release of compensation.
Regarding employment, he said the matter has been taken up with the concerned dam authorities through the Kathua DC for providing jobs to 816 affected families.
He further informed that, as per government order no. 340-PW (Hyd) of 2018 dated September 28, 2018, employment to oustees was to be provided by the Government of Punjab in accordance with the agreed Rehabilitation and Resettlement (R&R) Policy of both governments. He added that jobs will be extended to eligible oustees strictly as per the provisions of the policy.
On February 15, Jal Shakti minister of Jammu and Kashmir, Javed Ahmed Rana, had said that Shahpur Kandi Barrage will be completed by March 31 and consequently excess water from Ravi River will stop flowing to Pakistan.
J&K has sufficient stocks of fuel & essentials for next 10 to 15 days: CM
CM Omar Abdullah reiterated that Jammu and Kashmir has sufficient stocks of essentials, including fuel for the next 10 to 15 days.
Responding to media queries outside legislative assembly, he said, “What unfolds at international level is not in our hands and whatever is the fallout of this situation in India would unfold in J&K too.”
“Having said so, like I said recently there is no dearth of essential supplies including fuel as yet. We have sufficient stocks for the next 10 to 15 days but if war persisted then scarcity may happen and then it will have a bearing on J&K too,” he added.
Referring to a recent meeting with the Prime Minister, Omar said, “At the meeting PM told us that the supplies from various sources are being met,” he said.
