The delay in reactivation of Neelum-Jhelum Hydropower Plant after it was closed down following collapse of two tunnels has caused loss of billions to the national exchequer, the National Assembly was informed. A special committee which was constituted to determine the loss occurred due to delay in repair of the damaged headrace tunnels at Neelum-Jhelum Hydropower Plant has submitted its written report to the National Assembly.

The report stated that on May 1, 2024 the plant was shut down as two headrace tunnels of the dam cracked and then collapsed. The suspension of electricity generation caused loss of Rs33 billion to the national exchequer. The report also determined the reconstruction cost of the 2.5-kilometre concrete lining and other damaged structures at Rs21.7 billion. The report further pointed out that the repair cost is likely to shoot up after the completion of the repair work. 

 It is necessary to mention here that Prime Minister Shehbaz Sharif had constituted an inquiry committee on May 20, 2024, to determine losses occurred due to the suspension of electricity supply from Neelum Jhelum Project. The prime minister had later formed anothr special committee on January 7, 2025 but its report was still pending. 

In December last year, a government official during a public hearing of NEPRA had said that the closure of 969MW Neelum-Jhelum hydropower plant was costing the power consumers, as they were deprived of cheaper source of electricity, and if it had been operational the refund of Rs1.04 per unit, sought on account of monthly fuel charges adjustment (FCA) for December 2024, could have been even further higher.

Credit: Independent News Pakistan (INP)