CM Omar Abdullah Asserts 1979 Power Pact With Punjab as Sovereign Commitment; Demands Full Implementation
JAMMU APRIL 02, 2026:- During a high-stakes Question Hour in the ongoing 2026 Budget Session, Chief Minister Omar Abdullah declared that the 1979 power agreement between Jammu & Kashmir and Punjab is a binding sovereign commitment that must be honored in its entirety.
Responding to a supplementary question from MLA Basohli Darshan Kumar regarding the Ranjit Sagar Dam project, the Chief Minister—who also holds the Power portfolio—stressed that he would personally engage with his counterpart in Punjab to ensure the agreement is implemented in letter and spirit.
He reaffirmed J&K’s rightful claim to a 20% share of the electricity generated at Thein Dam and Shahpur Kandi Barrage at bus bar cost, noting that while a power sale agreement was signed in 2019, J&K has yet to receive any energy due to a persistent lack of transmission infrastructure.
Addressing the long-standing grievances of project-affected families, the Chief Minister provided a detailed breakdown of the financial liabilities and compensation status. Out of a total compensation package of ₹85.48 crore, the Punjab Government has released ₹71.15 crore, leaving an adjusted pending amount of approximately ₹8.90 crore plus substantial interest.
As of September 2025, the total liability including court-ordered payments and interest stands at ₹37.03 crore, with a current balance of ₹15.94 crore remaining in the compensation account.
CM Abdullah clarified that the primary hurdle in disbursing the remaining ₹50.51 crore is the failure of some landowners to submit essential documentation, such as PAN and Aadhaar details, despite multiple public notices from the Deputy Commissioner of Kathua.
The Chief Minister also touched upon the critical issue of employment for the 816 families ousted by the dam’s construction. He confirmed that the matter has been formally taken up with dam authorities, emphasizing that the Punjab Government is obligated to provide jobs under the agreed Rehabilitation and Resettlement (R&R) Policy established in 2018.
While he ruled out any current proposal for subsidized or free electricity specifically for the Basohli constituency, he reiterated the government’s unwavering commitment to securing the legal rights and livelihoods of those impacted by the project.
The session also saw further inquiries into the matter from Legislator Sham Lal Sharma, highlighting the regional urgency of the power and resettlement dispute.