The state's government is reportedly set to sign a power purchase agreement (PPA) for the plant in Srinagar city, which is planned to have a capacity of 5 MW.
The private company which is to build the plant was not named in official statements.
"This will be the first ever such plant in the entire Jammu and Kashmir and we have selected the company through a tendering process," Srinagar Municipal Council Commissioner Showkat Zarger was quoted as saying. "It will go a long way in managing our solid waste as well as add power to our grid.”
Work is expected to begin as soon as the PPA is signed, with completion expected in 18 months.
The site chosen for the plant is a local dump which has reached its maximum capacity, but residents are against its expansion. The dump reportedly receives 400 tonnes of garbage per day.
According to a report from India’s Centre for Science and Environment, Srinagar’s waste could produce 8.5 MW of power if exploited through waste-to-energy projects.