Chief Minister Omar Abdullah today asserted that the 1979 agreement between the Governments of Jammu & Kashmir and Punjab is a sovereign commitment that must be honoured in letter and spirit. The Chief Minister made these remarks on the floor of the House while replying to a supplementary question raised by MLA Basohli Darshan Kumar regarding compensation, employment for locals, and J&K’s 20 percent share of electricity from the Ranjit Sagar Dam project.
“I will take up the matter with the Government of Punjab and with my counterpart there. We will strive to ensure that the agreement signed in 1979 is implemented in letter and spirit,” the Chief Minister said during the Question Hour of the ongoing Budget Session of the Legislative Assembly.
Holding charge of the Power Department, the Chief Minister said he would personally engage with the Punjab Chief Minister to reiterate that the agreement constitutes a binding sovereign commitment between the two governments. He informed the House that as per 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 added that a power sale agreement between PSPCL and JKPCL was signed on October 11, 2019, for the sale and purchase of power from the Ranjit Sagar Dam project. However, no power is currently being injected into J&K’s system due to lack of transmission infrastructure.
The provisional tariff payable to PSPCL stands at ₹3.5 per kWh. The Chief Minister also clarified that there is no proposal under consideration to provide subsidized or free electricity to consumers in the Basohli constituency, where the project is located.
On compensation to project-affected families, the Chief Minister said the total compensation amount stands at ₹85.48 crore, out of which ₹71.15 crore has been released by the Punjab Government, leaving a pending amount of ₹14.32 crore.
He added that ₹5.41 crore in interest accrued on earlier released funds was utilized by the Deputy Commissioner, Kathua, for land compensation, bringing the adjusted pending amount to ₹8.90 crore. Further, he informed that ₹1.10 crore is to be paid as per 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 the delay in disbursement of full compensation, the Chief Minister said that non-submission of requisite documents by some landowners remains a major hurdle.
These documents include compensation applications, bank account details, PAN cards and Aadhaar cards. He said that the Deputy Commissioner, Kathua, has issued multiple public notices urging landowners to submit the required documents to facilitate timely release of compensation.
The government, he added, is committed to ensuring that all eligible beneficiaries receive their dues once procedural formalities are completed. Regarding employment, the Chief Minister said the matter has been taken up with the concerned dam authorities through the Deputy Commissioner, Kathua, for providing jobs to 816 affected families.
He further informed that, as per Government Order No. 340-PW (Hyd) of 2018 dated September 28, 2018, employment to oustees is to be provided by the Government of Punjab in accordance with the agreed Rehabilitation and Resettlement (R&R) Policy of both governments.
He added that jobs will be extended to eligible oustees strictly as per the provisions of the policy. Legislator Sham Lal Sharma also raised a supplementary to the question.