India kicks off Rs 5,129 Cr Sawalkot dam project on Chenab amid Indus waters treaty suspension

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In a significant move, the government of India, following the Indus Waters Treaty suspension with Pakistan, has fast-tracked a major Chenab River hydroelectric project in Jammu and Kashmir.

According to reports, National Hydroelectric Power Corporation (NHPC) has issued a Rs 5,129 crore tender for the Sawalkot Hydroelectric Project in Ramban district.
Planned on the Chenab River, the Sawalkot project will generate 1,856 MW among the region’s largest hydroelectric ventures.

The plan is significant as it is viewed as India’s broader strategy to leverage the Indus water allocated to India under the Indus treaty.

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The Indus water treaty has stood in abeyance since April 2026 after the deadly Pahalgam terror attack.

The Indus Waters Treaty was signed in 1960 and brokered by the World Bank, which allocates the waters of the Indus River system between India and Pakistan. India gets full rights to the Eastern Rivers (Ravi, Beas, Sutlej), while Pakistan controls 80% of the Western Rivers (Indus, Jhelum, Chenab) flow, with India allowed limited hydropower use.
As of February 2026, it remains paused despite ceasefires, enabling India to fast-track Chenab projects like Sawalkot without restrictions.

According to a report by CNNNews18, bids for the dam, tunnels, and associated works open March 12 and close March 20, remaining valid for 180 days under tender rules. The project faces a 3,285-day timeline, signaling multi-year construction ahead.

This move unlocks unrestricted hydropower development on Western Rivers previously limited by the 1960 treaty, boosting India’s energy security amid ongoing tensions.
The Sawalkot Hydroelectric Project on the Chenab river has been long in planning, and gains fresh momentum amid evolving geopolitics and India’s drive to maximise its river water share.

The Sawalkot Hydroelectric Project, located on the Chenab River near Sidhu village in Ramban district, approximately 120 km from Jammu and 130 km from Srinagar, will be developed in two phases with a total investment of Rs 22,704.8 crore. Phase 1 will generate 1,406 MW, while Phase 2 will add 450 MW.

NHPC plans year-round underground construction, full activity during non-monsoon months, and 50% surface progress during monsoons, aiming for completion in about nine years following the Indus Waters Treaty suspension after the Pahalgam attack.

With Forest Advisory Committee approval for diverting 847 hectares of forest land, locals anticipate significant employment, infrastructure improvements, and economic growth in Ramban and surrounding areas.

Conceived in the 1980s, it will become Jammu and Kashmir’s largest hydroelectric installation upon completion. Upon completion, the dam will boost Jammu and Kashmir’s power generation and reinforce the national grid supply.

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