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Home Breaking News

Neelum-Jhelum project unlikely to generate electricity before 2028

byCT Report
11/08/2026
in Breaking News, Business, Latest News
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ISLAMABAD: The Neelum-Jhelum Hydropower Project is unlikely to resume electricity generation before 2028, with repair work on the 979-megawatt facility expected to take another two years, according to sources in the Ministry of Water Resources.

The project, which was completed at a cost of Rs508 billion, has remained shut since 2024 after a fault halted its operations.

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According to Ministry of Water Resources sources, the repair of the Neelum-Jhelum Hydropower Project is expected to continue for another two years.

Electricity generation from the facility is therefore likely to resume in 2028, once the required rehabilitation work has been completed.

The prolonged shutdown means the project will remain unavailable for several more years despite its massive investment and 979MW generation capacity.

Rs508bn project faces prolonged shutdown

The Neelum-Jhelum project was completed over a period of 18 years at a total cost of Rs508 billion.

Despite the huge expenditure and lengthy construction period, the project could not operate continuously for even four years before being shut down in 2024 because of a fault.

The latest repair timeline has raised concerns over the reliability and escalating costs associated with major hydropower projects.

A foreign company has been awarded a contract worth Rs35 billion to carry out repair work on the damaged project.

The rehabilitation is focused on the infrastructure affected by problems in the headrace tunnel, which plays a crucial role in carrying water toward the turbines.

According to the available information, debris had fallen over only around 20 metres of the 68-kilometre-long tunnel.

Sources said the debris has already been removed and the affected tunnel section has been cleaned and dried. However, the closure of the headrace tunnel stopped the flow of water toward the turbines, preventing the power plant from generating electricity.

The project therefore remains dependent on extensive repair and rehabilitation work before generation can restart.

Cause of tunnel problem remains unclear

One of the major unanswered questions is why the tunnel settled in the first place. The reasons behind the settlement have not yet been determined, according to the information provided by Ministry of Water Resources sources.

Until the cause is fully established and the necessary repairs are completed, the 979MW Neelum-Jhelum Hydropower Project is expected to remain out of operation.

The prolonged closure has renewed questions about the performance and cost-effectiveness of large hydropower projects.

The Neelum-Jhelum scheme took 18 years and Rs508 billion to complete, but its operational life has been disrupted by a major fault only a few years after becoming operational.

With another two years of repair work expected and a Rs35 billion rehabilitation contract already awarded, electricity generation from the project is now likely to remain suspended until 2028.

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