Govt Greenlights New Chenab Hydel Project Amid Indus Waters Treaty Suspension

The Indian government has approved the 260 MW Dulhasti State-II hydropower project on the Chenab river in Kishtwar district of Jammu and Kashmir, marking a significant step amid the suspension of the Indus Waters Treaty (IWT).
This decision by the environment ministry's expert appraisal committee paves the way for construction of a strategically vital infrastructure project.
This approval follows closely on the heels of a similar nod given two months earlier for the 1,856 MW Sawalkot hydroelectric project on the same river in Ramban district.
Both initiatives underscore India's renewed push to harness the untapped hydropower potential of the Chenab, one of the western rivers designated under the IWT.
Pakistan has voiced strong objections, terming the developments as an 'abrupt variation in Chenab river flow' and protesting the suspension of the treaty. The neighbouring country views these projects as a direct challenge to water-sharing arrangements that have held for decades.
Under the IWT, signed in 1960 with World Bank mediation, India gained unrestricted rights over the eastern rivers—Sutlej, Beas, and Ravi—while Pakistan received the bulk of waters from the western rivers: Indus, Jhelum, and Chenab. India retains permissions for non-consumptive uses on these western rivers, such as run-of-the-river hydropower generation, without storage dams that impede flow.
Despite these rights, India has long underutilised its share due to inadequate infrastructure and storage capacity. To date, only 3,482 MW of hydropower capacity has been built in Jammu and Kashmir from an estimated potential of around 20,000 MW available from projects on the western rivers.
The Dulhasti State-II project, estimated at Rs 3,200 crore, extends the existing 390 MW Dulhasti State-I plant, operational since 2007. It involves diverting water from Stage-I via a separate tunnel, enhancing efficiency without major new diversions.
Land acquisition for the project remains modest, requiring over 8 hectares from two villages—Benzwar and Palmer—in Kishtwar district. This minimises displacement while maximising energy output from the Chenab's flow.
The suspension of the IWT has unlocked opportunities for bolder development on western rivers, previously constrained by diplomatic sensitivities. These approvals signal India's intent to assert its legal entitlements more aggressively, particularly in hydropower.
Strategically, the Chenab projects bolster energy security in Jammu and Kashmir, a region prone to power deficits. They also enhance India's leverage in the Indus basin amid ongoing tensions with Pakistan.
Pakistan's cries over the treaty suspension highlight the fragility of water diplomacy. The country relies heavily on western river flows for agriculture and hydropower, making any perceived Indian encroachments a flashpoint.
India maintains that its projects comply with IWT provisions for non-consumptive uses, as they do not involve large-scale storage. The Dulhasti and Sawalkot initiatives exemplify run-of-the-river designs that return water downstream post-generation.
The expert appraisal committee's green light reflects rigorous environmental scrutiny, balancing ecological concerns with developmental needs. This includes assessments of riverine ecosystems and sediment flows in the Chenab.
Economically, these projects promise substantial returns. At full capacity, Dulhasti State-II alone could generate clean energy equivalent to offsetting thousands of tonnes of carbon emissions annually, aiding India's renewable targets.
Jammu and Kashmir's hydropower potential remains vastly underexploited, with western rivers offering a lifeline for regional industrialisation. Full realisation could transform the union territory into a power surplus zone.
The IWT's suspension, triggered by recent geopolitical shifts, reopens debates on equitable basin management. India argues for modernising the 1960 framework to account for population growth and climate variability.
Pakistan, however, fears long-term precedents that could erode its water security. Diplomatic channels, including World Bank facilitation, may yet play a role in resolving disputes.
These approvals coincide with India's broader push for self-reliance in defence and energy infrastructure. Hydropower on border rivers doubles as a strategic asset, supporting military logistics in forward areas.
Local communities in Kishtwar and Ramban stand to benefit from job creation and improved electrification. However, careful resettlement and environmental mitigation will be crucial for sustained support.
As construction ramps up, international observers will watch closely for ripple effects on South Asian water relations. The Dulhasti State-II project thus embodies India's assertive pivot in managing shared resources.
In the long term, accelerated development could pressure both nations towards bilateral negotiations. Reviving IWT talks with updated clauses might ensure stability while unlocking mutual gains.
Based On TOI Report
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