First major project after IWT suspension
*Cost estimated at Rs 5129 cr
Sanjeev Pargal
JAMMU, Feb 8: In a major decision following abrogation of Indus Water Treaty (IWT), the Central Government has ordered start of work on Sawalkote hydroelectric project over river Chenab in Udhampur and Ramban districts at the cost of Rs 5129 crore.
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Official sources told the Excelsior that revival of the project was first announced by the Central Government on October 10, 2025 within months after suspension of the IWT in April following April 22 Pahalgam terror attack in which 26 civilians including 25 tourists and a local guide were killed. On October 10, the Government had recommended environment clearance for the project.
Stalled for nearly four decades, the Sawalkote project is one of India’s largest hydropower schemes in the Chenab basin and a key part of the Government’s push to fully utilise its share of western river waters under the 1960 treaty.
Under the IWT, the three eastern rivers — Ravi, Beas and Sutlej — were allocated to India for its exclusive use. The three western rivers — Indus, Jhelum and Chenab, all falling in Jammu and Kashmir — were reserved for Pakistan, though India retains limited rights to use their waters for non-consumptive purposes, such as run-of-the-river hydropower generation, navigation and fisheries.
Construction cost of Sawalkote Hydroelectric Project has been estimated at Rs 5129 crore and it has become first major new hydropower project to move forward after India put the IWT with Pakistan in abeyance.
Last week, the NHPC Ltd invited bids for construction of the project in Udhampur and Ramban districts.
As per the sources, the project is scheduled to be constructed in two stages, with 1,406 MW in Stage One and 450 MW in Stage Two. It has been designed as a run-of-the-river scheme located between the Baglihar project upstream and the Salal project downstream on the Chenab. The project is likely to be taken up on fast-track execution but is expected to take around nine years to complete.
The Sawalkote clearance follows the Environment Ministry’s Expert Committee approving the 1,856 MW project in October last year, amid a broader push to accelerate projects of strategic importance after the IWT suspension.
Soon after suspending the IWT, the Central Government had directed for fast-tracking four hydropower projects on the Chenab river system. While Pakal Dul and Kiru projects are scheduled to be commissioned by December 2026, construction of Kwar project, with a dam height of 109 meters, is likely to be completed by March 2028. The 850 MW Ratle project has also been fast-tracked and its completion is expected by 2028.
Pakal Dul project in Kishtwar (1000 MW) is the largest in the Chenab basin in Kishtwar district of the Jammu region. Kiru project, a 135-metre-high run-of-the-river, also falls in Kishtwar.
India is also advancing Dulhasti Stage-2, which received environmental clearance last December.
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