It is theirs, after all states like Gujrat sell their electricity to make money and keep a major section of the profit. So how come(meagre as it is) the Kashmiris only get 2% of the benefits of this 1%??
You are wrong again. Couple of things,
First, your 2% figure is baseless, and if you have a source for it then please share it with us here. What you heard from your "Kashmiri" friends doesn't count. If I were you, I would double check the "facts", specially when its related to a sensitive issue like Kashmir, where propaganda is rife. Its like me believing every thing the Baloch separatists claim and allege.
Second, as I mentioned earlier, a total of 2300 Mw of electricity is produced in the state of Jammu & Kashmir. Out of this roughly about 700Mw is produced by state owned power plants, and the rest 1600 Mw is produced by National Hydro Power Corporation(NHPC), which is a central government run company.
The power produced by state owned plants is state's own business and they have 100% right over it and get 100% revenue from that.
The power produced by NHPC, the states in which these Federal owned power plants are located, they get 10% of the total the electricity produced free of cost, its 12% free electricity in the case of Jammu and Kashmir( another incentive given to Jammu & Kashmir), so think of it as 12% revenue, as opposed to your baseless claim of 2%.
Now coming to your example of Gujarat, Gujarat can not and does not sell electricity produced by federal run/owned power plant, they sell the electricity produced by the Gujarat state owned power plants, and the 10% of free electricity they get from the NTPC, NHPC plants. So your comparison with Gujarat or any other power surplus state is once again, wrong!
Once Jammu and Kashmir state owned power plants start generating enough power to meet the demand of their state, they can sell it to whoever they want to, and keep 100% of the revenue. But to build and operate a power plant, it costs a lot of money, something which Jammu & Kashmir doesn't have.
However things are changing now, with funds slowly flowing in, Jammu and Kashmir state has plans to produce 9000Mw of hyrdro electric power by the end of 2022. Furthermore, Jammu and Kashmir State Power Development Corporation(JKSPDC) and National Hydro Power Corporation(NHPC) have formed a equal ownership joint venture(49% each) to undertake the
Chenab Valley Projects.
Chenab Valley Power Projects Private Limited (CVPP), has been incorporated on 13/06/2011 as a Joint Venture Company of NHPC Limited, JKSPDC and PTC (India) Limited for execution of 03 Hydroelectric Projects namely Pakal Dul, Kiru and Kwar with agrregate capacity of 2120 MW at Chenab River Basin in Distt Kishtwar of Jammu & Kashmir, with equity participation of 49%, 49% and 2% by NHPC,JKSPDC & PTC respectively. The Company shall execute these Projects on Build, Own, Operate and Maintain (BOOM) basis.
Chenab Valley Power Projects - A joint venture company between NHPC,jammu & Kashmir State Power Development Corporation and Power Trading Corporation
Ironically its Pakistan which keeps throwing spanner in the works of Jammu and Kashmir state, and thus denying the Kashmiris the rightful share of
their resources. For instance, Pakistan has already raised objection to all three hydel projects under the Chenab Valley Projects!
So what do you suggest, should India abrogate the Indus Water Treaty, so that the Jammu and Kashmiris can utilize their natural resources and make money from it? Trust me, India would be more than happy to do it, and since Pakistanis are so "concerned" about the rightful ownership of Kashmiri resources, they shouldn't have a problem with that either eh?