NHPC Invites Bids for ₹485 Cr Uri-I Stage-II Hydroelectric Project in J&K

In a significant step toward strengthening India’s renewable energy capacity, NHPC Limited has invited bids worth ₹485 crore for the execution of electro-mechanical (E&M) works at the upcoming Uri-I Stage-II Hydroelectric Project in Jammu & Kashmir. This 240 MW project, located in Baramulla district on the Jhelum River, is a run-of-river initiative designed to minimize environmental impact while enhancing the region’s energy infrastructure.

The tender covers comprehensive responsibilities including design, manufacturing, installation, testing, and commissioning of key systems like turbines, generators, and control panels. Alongside this, civil works including a 10.47 km headrace tunnel, surge shaft, underground powerhouse, and tailrace systems are also being initiated in a separate package.

The move is part of NHPC’s broader strategy to boost hydropower generation in northern India and to provide a reliable and clean energy source aligned with national sustainability goals. Once completed, Uri-I Stage-II will not only add 240 MW to the national grid but also create job opportunities and stimulate local development in Jammu & Kashmir. The last date for bid submission for the E&M works is July 30, 2025.

In a strategic push to enhance India’s clean energy production, NHPC Limited has floated a tender worth ₹485.4 crore for electro-mechanical (E&M) works under the Uri-I Stage-II Hydroelectric Project in Jammu and Kashmir. This ambitious 240 MW run-of-river hydroelectric project, an extension to the already operational 480 MW Uri-I project, is located near the town of Uri in the Baramulla district. It harnesses the flow of the Jhelum River and aims to provide uninterrupted, green electricity to the Northern Grid.

The tender signifies NHPC’s commitment to delivering large-scale infrastructure in the power sector, and it aligns with India’s broader mission to expand its renewable energy mix while ensuring regional development in Jammu & Kashmir.

The Uri-I Stage-II project is envisioned as a twin-unit power plant, each unit capable of generating 120 MW of electricity, totaling a 240 MW output. These units will be housed in an underground powerhouse to minimize environmental impact and preserve the natural landscape.

The electro-mechanical tender includes the design, manufacture, supply, transportation, storage, installation, testing, commissioning, and performance guarantee of turbines, generators, control systems, cooling water systems, and other auxiliary mechanical and electrical components. NHPC is calling for contractors with the capability to not only deliver world-class equipment but also oversee seamless integration and operation for at least two years after commissioning.

Apart from the E&M package, NHPC has also initiated civil construction bids. The civil works cover an extensive headrace tunnel of about 10.47 km in length with a diameter of 6.5 meters, which will divert water from the river to the powerhouse.

It also includes a vertical surge shaft measuring 17 meters in diameter and 93.5 meters in height, a surge tunnel with a 5-meter steel-lined diameter, and a tailrace system to return water to the river post electricity generation. These underground structures are critical to maintaining the hydraulic stability of the system, especially in load fluctuation scenarios, ensuring the safety and longevity of the power plant.

Advertisement. Scroll to continue reading.

The bid submission deadline for the E&M package is set for July 30, 2025. The detailed specifications outlined in the bid document reflect NHPC’s high standards in equipment quality, safety, and performance reliability. The contractor selected will also be responsible for conducting a performance test of the installed systems and guaranteeing their efficiency over a two-year post-commissioning period.

This tender not only opens up a large business opportunity for players in the heavy electrical engineering sector but also reflects the growing demand for technically advanced, high-capacity hydroelectric systems in the region.

The Uri-I Stage-II project carries both national and regional significance. On a national level, it is a part of the Indian government’s push for cleaner energy alternatives as the country transitions away from fossil fuels. Hydropower, being one of the most stable and consistent renewable energy sources, is essential to balancing the grid, especially as India’s solar and wind energy contributions increase but remain intermittently available.

Regionally, the project promises to significantly boost electricity availability in Jammu and Kashmir and the Northern Region Power Grid, supplying power to states like Punjab, Haryana, Himachal Pradesh, Delhi, Rajasthan, and Uttar Pradesh.

From a geopolitical standpoint, the project is strategically important. It falls under the purview of the Indus Waters Treaty signed between India and Pakistan. As a run-of-river project, it ensures compliance with the treaty, causing minimal storage of water and maintaining natural downstream flow, thereby minimizing environmental disruption and political tension. NHPC has consistently maintained that all technical designs for Uri-I Stage-II strictly follow treaty norms to avoid any international disputes.

The project is also set to become a major catalyst for economic activity in the region. During the construction phase, it is expected to create substantial local employment opportunities and stimulate the development of ancillary services such as transportation, hospitality, equipment supply, and small-scale industry. Post-construction, improved power availability will attract more industries and startups to the valley, help modernize agriculture through reliable irrigation pumps, and enhance the quality of life by stabilizing power supply to homes, schools, hospitals, and telecom networks.

NHPC has been actively involved in multiple hydroelectric projects across northern India, and its expertise in managing high-altitude, geologically complex terrains gives it a significant edge. However, projects like Uri-I Stage-II are not without challenges. The region’s complex Himalayan geology presents considerable tunneling and excavation risks such as rock falls, water ingress, and seismic activity. Detailed geotechnical studies and advanced tunneling techniques such as the use of Tunnel Boring Machines (TBMs) and controlled drilling and blasting will be deployed to mitigate these risks.

The company also has to ensure strict environmental compliance. Though run-of-river projects have less ecological impact than reservoir-based dams, the construction activities, particularly tunneling and material transport, must adhere to environmental protection laws. Measures such as sediment control, regulated blasting, preservation of riverine flora and fauna, and compensatory afforestation will be implemented under the Environment Management Plan (EMP).

Financially, the ₹485 crore budget for the E&M package is in line with similar projects of this scale and scope. NHPC is expected to finance the project through a combination of internal accruals, debt from financial institutions, and possibly external support. The cost translates to approximately ₹2 crore per megawatt for the E&M scope, which includes premium engineering, performance warranties, and installation support. Combined with civil works and site infrastructure, the total cost of Uri-I Stage-II could range between ₹2,000 to ₹2,500 crore over its lifecycle.

Advertisement. Scroll to continue reading.

Once commissioned, Uri-I Stage-II will join a list of landmark hydropower projects in the state, such as Dul Hasti and Kishanganga. These projects not only supply power but also stand as symbols of engineering excellence in harsh terrains and politically sensitive regions. NHPC’s decision to initiate this tender now also reflects confidence in the improved security situation in Kashmir and the government’s emphasis on integrating the region with national development objectives.

Looking forward, the Uri-I Stage-II project is expected to be completed by 2029 or 2030, depending on the speed of contractor mobilization and field execution. The E&M tender marks the beginning of this countdown. With clean energy playing an increasingly central role in India’s power policy, projects like Uri-I Stage-II serve as milestones toward achieving energy security, regional balance, and sustainable development.

Group Media Publication
Construction, Infrastructure and Mining   
General News Platforms – IHTLive.com
Entertainment News Platforms – https://anyflix.in