In a major policy move following the abeyance of the Indus Water Treaty (IWT), the Central Government has ordered the start of work on the long-pending Sawalkote Hydroelectric Project on the Chenab river in Jammu and Kashmir’s Udhampur and Ramban districts, with an estimated cost of Rs 5,129 crore.
The revival of the project was announced in October 2025, a few months after the IWT was put in abeyance in the aftermath of the April terror attack in Pahalgam that claimed 26 civilian lives. Environmental clearance for the project was recommended later the same month, clearing a major hurdle for its execution.
Stalled for nearly four decades, Sawalkote is among the largest hydropower projects planned in the Chenab basin and forms a key part of India’s strategy to maximise utilisation of its permitted share of western river waters through run-of-the-river power generation.
Under the 1960 treaty framework, Ravi, Beas and Sutlej were allocated for India’s exclusive use, while Indus, Jhelum and Chenab were designated as western rivers, with India allowed limited non-consumptive uses such as hydropower generation, navigation and fisheries.
The Sawalkote project, with a total planned capacity of 1,856 MW, will be developed in two stages — 1,406 MW in Stage-I and 450 MW in Stage-II. It is designed as a run-of-the-river scheme and will be located between the Baglihar project upstream and the Salal project downstream on the Chenab river.
NHPC Ltd has invited bids for construction works, marking the formal start of the project rollout. Authorities plan to execute the scheme on a fast-track basis, though full completion is expected to take around nine years.
The approval follows clearance by the Environment Ministry’s Expert Committee last year as part of a broader push to accelerate strategically important infrastructure projects after the IWT suspension.
The Centre has also fast-tracked multiple other hydropower projects in the Chenab basin. The 1,000 MW Pakal Dul and 624 MW Kiru projects are targeted for commissioning by December 2026. The Kwar project, featuring a 109-metre dam, is expected to be completed by March 2028, while the 850 MW Ratle project is also scheduled for completion by 2028.
Additionally, Dulhasti Stage-II has received environmental clearance and is moving ahead, further strengthening hydropower capacity in the region.
