India is moving decisively to construct its largest hydroelectric power project in Jammu and Kashmir, called the Sawalkote Hydroelectric Project, which will have a capacity of 1856 Megawatts (MW). This major development follows India's suspension of the Indus Waters Treaty with Pakistan.

The project is situated on the Chenab River near Sidhu village in the Ramban district, approximately 120 km from Jammu and 130 km from Srinagar.

The National Hydroelectric Power Corporation (NHPC) has formally initiated the tendering process as of July 29, 2025, inviting international competitive bids with the submission deadline set for September 10, 2025.

Conceived originally in the 1960s and designed with input from the Geological Survey of India, the Sawalkote project remained stalled for over four decades due to administrative delays, environmental concerns, Pakistan’s objections under the treaty framework, and logistical challenges such as relocation of local communities and an army transit camp.

The project area includes about a dozen villages that will be affected, necessitating relocation and compensation for hundreds of families. The project will be completed in two phases and is estimated to cost roughly ₹22,704 crore (about 227 billion rupees), with some estimates suggesting costs could escalate beyond ₹30,000 crore if further delayed.

The project involves nine turbines housed in an underground powerhouse and aims to generate close to 8,000 million units of electricity annually. Construction will require transferring around 3,000 acres of reserved forest and jungle land for the dam and related infrastructure, for which environmental clearances have been recently obtained.

The project is structured under a BOOT (Build, Own, Operate, and Transfer) model with NHPC holding majority stakes, and the Jammu and Kashmir Power Development Corporation as a partner. After 40 years, control of the project is to revert fully to Jammu and Kashmir’s administration.

Strategically, this project is viewed as a symbol of India's assertion over its rights to water resources from western rivers under the Indus Waters Treaty, particularly as India is proceeding without seeking Pakistan’s no-objection certificate, which was formally required under the treaty for projects on the Chenab river.

The suspension of the treaty in April 2025 by India, in response to terrorism-related concerns, removes the prior constraint of needing Pakistan’s consent and allows India to move forward freely on this and other hydroelectric projects in the region.

The revival and fast-tracking of the Sawalkote project are part of a broader government effort to enhance energy security, boost regional power generation, and optimize utilization of available water resources.

The designation of the project as one of national importance is intended to expedite pending bureaucratic approvals and clearances, including those involving forest land and resettlement.

While experts emphasize the need for careful execution to mitigate environmental damage, socio-political impacts, and cost overruns, this marks the most significant step toward operationalizing a strategically vital hydroelectric project in Jammu and Kashmir in over half a century.

India’s Sawalkote Hydroelectric Project represents a landmark infrastructure initiative, aimed to be a game-changer for Jammu and Kashmir’s power landscape and a strategic assertion of water rights in the contested Indus basin, undertaken now without adherence to treaty-mandated objections from Pakistan following the treaty’s suspension.

The project is poised to start major construction activities post-tendering in late 2025, forecasting a decade-long completion timeline.

Based On A NDTV Report