Electricity demand is increasing rapidly in each state of India and to fulfil this demand the development spreads to various states of the country due to this the production of electricity has become more. The review article mainly focus on state of Jammu and Kashmir which have significant water resources with the capability to generate about 20,000 MW of hydroelectric power and is experiencing worst power crises. Out of 20,000 MW capacities 16,000 MW have been identified economically and technically feasible. The state has various river basins which include Indus and its tributaries, Jhelum and its tributaries, Chenab and its tributaries; as well as Ravi water resources and many hydroelectric power projects are installed on these river basins. Some projects had been completed and some... are under work. The State is deficit in power supply and even to fulfil its own requirement, around 70% of power is imported / purchased from outside states. The initiative to increase hydropower capacity is to turn towards more energy-efficient processes, which will also help the State to conserve electricity.