NHPC to pay ₹227.82 Cr to HCC for Kishanganga Project

New Delhi Feb 23, 2026: State-run Hydropower giant NHPC Ltd has announced the exchanges about the magnificent arbitral award pronounced by Arbitral Tribunal regarding the case dispute between Kishanganga HE Project against Hindustan Construction Company (HCC). The arbitral tribunal has passed a favourable decree against NHPC-led Kishanganga HE Project to pay compensation amount of Rs 227.82 crore plus interest and EUR 26.66 million from NHPC with respect to the on-going disputes over the 330 MW Kishanganga Hydroelectric Power Project in Jammu and Kashmir.

However, a counter claim has also been proposed by state-owned firm of Rs 738.67 crore which is still pending against HCC, indicating still going legal, financial and contractual disputes.

The 330 MW Kishanganga project was commissioned in 2018 and was constructed by consortium led by HCC jointly with UK-based Halcrow group with 98% control of HCC.

The arbitration case consists of HCC’s claim related to the release and refund of encashment of Performance Bank Guarantee and Retention Money Bank Guarantee along with nine miscellaneous claims raised by HCC which covers different aspects of the project execution.

The disclosure of the material involved in the litigation process is variations in legislation which affects work contract tax, toll tax, VAT, GST, CST, and Custom Duty Price adjustment claims, cost related depositing tax demand issues raised by Jammu and Kashmir Tax Authorities, interest on customs duty payments, cost of additional work executed beyond the original contract scope.

The Kishanganga HE Project is a one of the rivers hydroelectric schemes in Jammu and Kasmir where its dam diverts water from Kishanganga River to a power plant in Jhelum River basin. It is located near Dharmahama Village near north of Bandipore in the Kashmir Valley and has an installed capacity of 330 MW.