J&K has a hydel power potential of over 20,000 mw but so far hardly 1500 mw of this potential has been exploited, both under state and Central schemes. The state faces a peak shortage of 27 per cent while it is about 7 per cent at the national level. The state has an annual expenditure of Rs 2000 crore on purchasing power from outside to meet its demands. Against the expenditure, the collections are less than Rs 300 crore, leading to a Rs 1700 crore deficit.

Several hydro-electric projects have been inordinately delayed. But these pale in comparison with the generating capacity of the BHP which is of 900 MW and promises to meet one third of the power requirements of J&K.

• What does it mean for the larger concerns of J&K?

The NE verdict on the BHP will hopefully set the ball rolling for other such projects to be implemented in the conflict ridden state. The decline in violence over the last year, increased transport and communication links across the LoC, trade linkages and the ongoing peace process would all materialise into something substantive for the people of the state if they are complemented by an increased pace of development. Addressing the current power situation holds the key to the development question in the region.

The writer is a research scholar at the School of International Studies, JNU, New Delhi