1979 Punjab Power Pact Gives J & K 20% Share: Omar

(MENAFN- Kashmir Observer) Srinagar- Chief Minister Omar Abdullah on Thursday said the 1979 agreement between Jammu and Kashmir and Punjab is a“sovereign commitment” that must be honoured in both letter and spirit, as he flagged the Union Territory's pending 20 percent share of power from the Ranjit Sagar Dam project.

Replying to a supplementary question by MLA Basohli Darshan Kumar during Question Hour in the ongoing Budget Session of the Legislative Assembly, Omar said he would take up the matter with the Punjab government and his counterpart.

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“We will strive to ensure that the agreement signed in 1979 is implemented in letter and spirit,” he said, adding that he would personally engage with the Punjab Chief Minister to reiterate that the pact is a binding commitment between the two governments.

Holding charge of the Power Development Department, Omar informed the House that under the 1979 agreement, J&K is entitled to 20 percent of the total power generated at Thein Dam and Shahpur Kandi Barrage at bus bar cost.

He said a power sale agreement between Punjab State Power Corporation Limited (PSPCL) and Jammu and Kashmir Power Corporation Limited (JKPCL) was signed on October 11, 2019, for supply from the Ranjit Sagar Dam project. However, no power is currently being supplied to J&K due to the absence of required transmission infrastructure. The provisional tariff payable to PSPCL has been fixed at ₹3.5 per kWh.

The Chief Minister also clarified that there is no proposal to provide subsidised or free electricity to consumers in the Basohli constituency, where the project is located.

On compensation to project-affected families, Omar said the total compensation stands at ₹85.48 crore, of which ₹71.15 crore has been released by the Punjab government, leaving ₹14.32 crore pending. He said ₹5.41 crore in interest accrued on earlier funds has already been utilised for land compensation, reducing the adjusted pending amount to ₹8.90 crore.

He further informed that ₹1.10 crore is payable under 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 delays, Omar said non-submission of required documents by some landowners remains a key hurdle. These include compensation applications, bank account details, PAN and Aadhaar cards. He said the Deputy Commissioner, Kathua, has issued multiple public notices urging beneficiaries to complete formalities.

“The government is committed to ensuring that all eligible beneficiaries receive their dues once procedural requirements are fulfilled,” he said.

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On employment, the Chief Minister said the issue has been taken up with dam authorities through the Deputy Commissioner, Kathua, for providing jobs to 816 affected families.

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He added that as per Government Order No. 340-PW (Hyd) of 2018, employment to oustees is to be provided by the Punjab government in accordance with the agreed Rehabilitation and Resettlement policy of both sides, and will be extended strictly as per its provisions.

Legislator Sham Lal Sharma also raised a supplementary during the discussion.

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