India is moving forward with its biggest hydroelectric power project yet—an 1856-megawatt plant to be built on the Chenab River in Jammu and Kashmir. This major project, named the Sawalkote Hydroelectric Project, comes just weeks after India suspended key provisions of the Indus Water Treaty with Pakistan, following the April 22 terrorist attack in Pahalgam. Importantly, the project will be constructed without seeking Pakistan’s approval, which would normally be required under the treaty.
The National Hydroelectric Power Corporation (NHPC) has officially invited international bids for the project, with the last date for submission set for September 10. The tendering is being done through International Competitive Bidding (ICB). This long-pending project is a joint venture between NHPC and the J&K State Power Development Corporation (JKSPDC).
Originally planned in the 1980s, the project has faced over four decades of delay due to bureaucratic hurdles and repeated objections from Pakistan. Islamabad has consistently raised concerns about the dam’s potential impact on the flow of the Chenab River, over which it holds water rights under the Indus Waters Treaty.
Now, India is pushing ahead decisively. The Sawalkote project will be built in two phases and will cost an estimated ₹22,704 crore. It is seen as both a strategic and developmental milestone, aimed at boosting energy generation in the region and reducing dependence on fossil fuels.
The project will follow the BOOT (Build, Own, Operate, and Transfer) model. According to an MoU signed in 2021, NHPC will own and operate the project for 40 years before handing it over fully to the J&K government.
To clear the way for construction, the central government has taken significant steps. Several hurdles blocking the international bidding process have been removed. Recently, the Forest Advisory Committee of the Ministry of Environment approved the transfer of around 3,000 acres of reserved forest and Jungle Jhari land for the project.
However, the development will affect nearly a dozen villages in the region. Officials have confirmed that relocation of hundreds of families will be necessary, and resettlement plans are being prepared as part of the project’s implementation.
Under the 1960 Indus Waters Treaty, brokered by the World Bank, India has full rights over rivers like the Ravi, Beas, and Sutlej, while Pakistan holds rights over the Indus, Jhelum, and Chenab. Although India is allowed to construct run-of-the-river hydro projects on the western rivers, it must get clearances related to the project’s design and height from the Indus Water Commission—a requirement India is now bypassing after putting the treaty on hold.
The decision to suspend the treaty provisions was announced after the April terror attack in Jammu and Kashmir, with India stating it would not resume treaty commitments until Pakistan “irreversibly abandons terrorism.”
By launching this massive power project, India is not only asserting its rights under changing diplomatic conditions but also aiming to enhance energy security, create jobs, and improve infrastructure in the sensitive border region of Jammu and Kashmir.