The Indian government has intensified its efforts to fast-track the construction of the Kwar Dam on the Chenab River in Kishtwar, Jammu and Kashmir, by seeking a loan of ₹3,119 crore.

This move comes in the wake of India's recent suspension of the Indus Water Treaty (IWT), a six-decade-old agreement that regulated the sharing of Indus basin waters between India and Pakistan, following the deadly Pahalgam terror attack in April 2025.

The Kwar Dam is a greenfield storage-type hydroelectric project being executed by Chenab Valley Power Projects Limited (CVVPL), a joint venture between NHPC Limited and Jammu & Kashmir State Power Development Corporation Limited.

The total cost of the project is ₹4,526 crore, with the sought loan intended to finance a significant portion of the construction. The project will feature a 109-metre high concrete gravity dam and is designed to generate 540 MW of power, with an expected annual output of 1975 million units (MU). The dam is located approximately 28 km from Kishtwar.

A major milestone was achieved in January 2024 with the successful diversion of the Chenab River, enabling the start of main dam works and the excavation of a 609-metre long Main Access Tunnel. The government aims to complete the Kwar Hydro Electric Project by 2027, with efforts underway to meet an earlier commissioning target of May 2026.

The project is expected to significantly boost energy availability in the region, accelerate industrial growth in Jammu & Kashmir, and contribute to India's clean energy goals by adding substantial hydropower capacity to the national grid.

Strategically, the Kwar Dam and other ongoing hydroelectric projects on the Chenab—such as Pakal Dul, Kiru, and Ratle—are seen as tools for India to exercise greater control over water flows to Pakistan, particularly after the pause on the IWT.

Recent operational decisions, like closing sluice gates at upstream dams (Salal and Baglihar), have already resulted in a record 61% drop in Chenab's water flow to Pakistan, threatening irrigation supplies and agricultural output in Pakistan's Punjab province. Once completed, the Kwar Dam will further enhance India's ability to regulate the timing and quantity of water released downstream, especially during critical dry periods.

The Kwar Dam project represents not only a major infrastructure and energy initiative for India but also a significant geopolitical lever in the ongoing water and diplomatic tensions with Pakistan, especially in the context of the suspended Indus Water Treaty.

Based On A News18 Report