ISLAMABAD: More than two months after a mishap that led to the complete shutdown of the 969-megawatt Neelum-Jhelum Hydro­­power Project (NJHPP), the exact cause and veracity of the problem remains unknown.

Officials privy to the development told Dawn that the problem appeared to be larger than anticipated and could keep the Rs500bn NJHPP — located near Muzaffar­ab­­ad in Azad Kashmir — off the grid for at least another 18 to 24 months.

They said the scale of the decline in headrace tunnel pressure (HRT) and dewatering of a 17km section of the tunnel indicated “some major crack or a collapse”, but the exact situation is still unclear.

Despite its installed capacity of 969MW, the project has on occasion exceeded this level, touching 1,040MW. When operational, it had been providing more than 5bn units of electricity (in kilowatt-hours) to the national grid annually at an average tariff of about Rs10 per unit, at no fuel cost.

Fault in headrace tunnel had necessitated shutdown of 969MW Neelum-Jhelum project a mere month after it achieved full capacity

The shutdown of the NJHPP means direct losses of more than Rs55bn per year, while its indirect impact would come in the shape of expensive replacement fuel, which could cost between Rs90 and Rs150bn, depending on the fuel source, an official said.

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