Shafqat Bukhari
“Hydropower investment, urban asset monetisation and agricultural infrastructure offer opportunities, but implementation, transparency and accountability will determine their success.”
The Jammu and Kashmir Cabinet’s approval of two major policy initiatives on hydropower development and urban asset monetisation marks an important step towards diversifying the Union Territory’s economy and strengthening its financial foundations. At a time when Jammu and Kashmir is seeking to attract private investment, improve infrastructure and expand its revenue base, the decisions reflect an attempt to move beyond conventional government spending towards a more sustainable development model. Chaired by Chief Minister Omar Abdullah, the Cabinet approved the Jammu and Kashmir Hydropower Policy-2026 and the Urban Asset Mapping and Monetisation Policy-2026, besides clearing land allotments for fruit mandis at Pattan, Tral and Kulgam and a grid station in Bandipora. These decisions address four important areas of the region’s economy: energy, urban governance, agriculture and infrastructure. However, the real test lies not in policy announcements but in their implementation. The proposed Hydropower Policy deserves particular attention. Jammu and Kashmir possesses substantial hydropower potential, yet a considerable portion remains untapped. By encouraging private investment in projects of up to 100 MW through Independent Power Producer and Public-Private Partnership models, the government seeks to accelerate project development and reduce the financial burden on public resources. Hydropower is not merely an energy resource for Jammu and Kashmir; it is a strategic economic asset. Greater private participation could bring investment, technology and operational expertise while creating employment opportunities. Nevertheless, development must remain sensitive to the region’s fragile ecology. Environmental assessments, rehabilitation measures and the interests of local communities cannot be compromised in the pursuit of investment. Sustainable hydropower development must balance economic returns with ecological responsibility. Equally significant is the Urban Asset Mapping and Monetisation Policy-2026. Urban Local Bodies possess commercial properties, buildings and land that could generate additional revenue if properly identified and utilised. Municipal institutions frequently face financial constraints while dealing with growing demands for sanitation, drainage, waste management, street lighting and other civic services. A transparent asset monetisation framework could help municipalities mobilise additional resources without depending entirely on government grants. However, monetisation must not become indiscriminate disposal of public property. Proper valuation, competitive bidding and accountability are essential. Revenue generated from public assets should be reinvested in improving civic infrastructure and services.
“With Jammu and Kashmir’s Council of Ministers now at full strength, the government must match its new economic initiatives—in hydropower, urban monetization, agriculture, and power—with swift, transparent execution that delivers tangible benefits to citizens. At the same time, it cannot afford to overlook unresolved public grievances, particularly the regularisation of daily wagers and the rehabilitation of fire-affected traders.”
The approval of land for fruit mandis at Pattan, Tral and Kulgam is particularly welcome for a region whose rural economy depends heavily on horticulture. Fruit growers frequently face challenges relating to transportation, storage, market access and price fluctuations. Establishing mandis closer to production centres could reduce transportation difficulties, improve marketing efficiency and provide better access to buyers. Similarly, the proposed grid station in Bandipora, for which 32 kanals of land have been approved, addresses an important public requirement. Reliable electricity is essential for households, businesses, healthcare facilities and industrial activity. Strengthening the distribution network can improve power supply and support economic development. The Cabinet’s decisions also come at an important administrative juncture, being the first full-strength meeting following the induction of four ministers on October 27. With the Council of Ministers reaching its maximum permissible strength of nine, including the Chief Minister, the government has an opportunity to strengthen departmental coordination and accelerate decision-making. At the same time, governance must remain responsive to longstanding public concerns. The clarification that regularisation of daily wagers did not figure on the Cabinet agenda is a reminder that thousands of temporary workers continue to await a resolution of their employment-related concerns. Similarly, the rehabilitation of traders affected by fires at Jammu’s Warehouse Market and Shiv Market deserves sustained attention. Ultimately, the Cabinet’s decisions provide an opportunity to strengthen Jammu and Kashmir’s economic foundations. Hydropower can attract investment, urban asset monetisation can improve municipal finances, fruit mandis can support growers and improved electricity infrastructure can strengthen public services. The Government must now establish clear timelines, transparent monitoring mechanisms and measurable outcomes. The success of these policies should be judged by the benefits they deliver to ordinary citizens, not merely by the announcements made in Cabinet meetings. Jammu and Kashmir does not lack economic potential. What it needs is an institutional framework capable of converting that potential into tangible public benefit. The Cabinet has taken a step in that direction; the responsibility now lies with the administration to ensure that these decisions move swiftly from government files to the ground.
