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HCC secures ₹5.24 billion NHPC contract for Salal Power Station in J&K

India | August 12, 2026
Federal Reserve Building

Hindustan Construction Company Limited has secured a ₹5.24 billion contract from NHPC Limited for civil and hydro-mechanical works at the Salal Power Station in Jammu & Kashmir. The project spans 27 months and aims to optimize dam functionality.

Hindustan Construction Company Limited (HCC), a major Indian infrastructure construction entity, has secured a civil and hydro-mechanical works contract valued at ₹5.24 billion from NHPC Limited, India's premier hydropower development enterprise, for the Salal Power Station in Jammu & Kashmir.

Under the terms of the agreement, HCC will execute comprehensive civil and hydro-mechanical works alongside associated ancillary and enabling tasks. The mandate focuses on restoring and making the undersluices of the concrete dam fully functional and operational over a stipulated completion period of 27 months at the site located in Jammu & Kashmir.

This contract enhancement plays a crucial role in operational sustainability for NHPC's key hydroelectric asset. Modernizing and rehabilitating the undersluices is expected to significantly improve sediment management, bolster long-term structural safety, and optimize power generation efficiency at the facility.

For the broader hydropower sector and regional development, the contract underscores a ongoing policy focus on maintaining critical water control and power infrastructure. Effective sediment handling in Himalayan river systems remains a vital engineering imperative to ensure renewable energy stability and environmental safety.

From a strategic perspective, the order strengthens HCC's order book while reaffirming its dominant footprint in Jammu & Kashmir's engineering ecosystem. Building upon its four-decade history in the region—including the original construction of the Salal Hydroelectric Project—this mandate reinforces investor confidence in HCC's core competencies in complex hydraulic engineering and tunneling projects.

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