Neelum-Jhelum project expected to resume within two years, NA informed

ISLAMABAD: On Friday, Federal Minister for Water Resources Muhammad Moeen told the National Assembly that the government expects to complete the restoration of the Neelum-Jhelum Hydropower Project (NJHPC) within two years.

During the question hour, he said the committee investigating the issue will soon finalize its report.

The minister added that authorities have spent about Rs 6.6 billion so far to repair the project’s Tail Race Tunnel (TRT). After fixing the TRT, the plant resumed full operations in March 2024, generating 969 megawatts of electricity.

However, authorities had to shut down the plant again in May 2024 due to an issue in the Head Race Tunnel (HRT). He added that the government has not yet awarded the main contract for repairing the HRT.

Giving more details, the minister said NJHPC spent Rs 3.8 billion in 2022–23 and Rs 3 billion in 2023–24 on TRT repairs, with approval from its Board of Directors.

He said the project is currently operating under a provisional tariff on a “take-and-pay” basis. He added that the company is not paying any fixed payments or returns on investment. The company manages its expenses using its resources and pending payments from power sales to the Central Power Purchasing Agency (CPPA-G).

al Power Control Centre reported that the country currently generates enough power to meet demand, so officials are not implementing load-shedding due to shortages.

He also said the shutdown has not affected the local electricity supply because other power plants are supplying electricity through the national grid.

The minister informed the House that officials have instructed the project’s consultants to review and improve maintenance procedures to prevent such issues in the future.

He stressed that the plant must operate and maintain equipment according to the manufacturer’s guidelines to avoid unexpected closures.