Polity question from Panchayat Secretary (VLW) exam, 2025 by JKSSB
The Jammu and Kashmir government has imposed water usage charges on all major and medium hydroelectric projects in the state to
Last updated Jun 5, 2026
Correct Answer:
Option D —
Take a first step towards its economic self-reliance
Context and Objectives of the Decision:
The policy was enacted via the Jammu and Kashmir Water Resources (Regulation and Management) Act, 2010.
Revenue Generation: Jammu and Kashmir is highly rich in hydro-power potential. By levying a water usage charge (often referred to as a water cess) on central and private power generation utilities (like the NHPC), the government created a significant and recurring stream of internal revenue.
Economic Self-Reliance: Historically, the region relied heavily on central financial assistance. Converting its abundant natural water resources into a regulated financial asset allowed the local government to collect thousands of crores in revenue, making a major structural stride toward fiscal autonomy and economic self-reliance.
Development Fund: The money collected from these water charges is specifically allocated to a dedicated fund used for building new state-owned hydel projects, buying back old power stations, and improving local infrastructure.
Answer verified by Quintessence Classes faculty — Karan Nagar, Srinagar.
