India Plans Biggest Hydro Project In J&K, Months After Indus Treaty Suspension

India is all set to build its biggest hydroelectric power project on the Chenab River in Jammu and Kashmir, weeks after suspending the Indus Water Treaty. It's a massive 1856-Megawatt hydroelectric project that will be constructed without seeking a no objection from Pakistan, otherwise mandated under the treaty. 

The National Hydroelectric Power Corporation (NHPC) has started the tendering process for the Sawalkote Hydroelectric Project. On Wednesday, NHPC formally invited bids on an International Competitive Bidding (ICB) basis for the project. The last date for submitting bids is September 10. The project is a joint venture of NHPC and J&K's Power Development Corporation. 

The project conceived in the 1980s was in limbo for the last 40 years.  Besides procedural delays, Pakistan objected to the construction of the project, citing concerns about the impact of the dam on the flow of the Chenab River. 

The mega project will be built in two phases and is estimated to come up at a cost of Rs 22,704 crore. 

After the Pahalgam terrorist attack on April 22, India declared it would hold the Indus Water Treaty in abeyance till the time Pakistan irrevocably abjures terrorism.  

Under the treaty brokered by the World Bank in 1960, India has absolute rights over the water of the Beas, Satlej and Ravi rivers. Pakistan has rights over the water of the Indus, Jhelum, and Chenab rivers. 

Besides a limited usage of water for irrigation, India, however, can build run-of-the-river projects on these rivers. But it's subject to clearance from the Indus Water Commission over the design and height of projects. 

As part of the project, around a dozen villages will be affected, and the relocation of hundreds of families is part of the project. 

Officials say that while J&K State Power Development Corporation had started work on the project and spent over Rs 400 crore, the work was stalled a decade ago.  In 2021, during the central rule, NHPC was roped in. An MOU was signed, making NHPC a majority stakeholder. According to the MOU, it will be a BOOT model ( build, own, operate and transfer)  and J&K will fully get back the project after 40 years. 

Ahead of tendering, the government has removed several bottlenecks in the way of international bidding and the construction of this project of strategic importance. Recently, the Forest Advisory Committee of the Ministry of Environment granted approval for the transfer of about 3000 acres of reserved forest and jungle Jhari land for the construction of the project, officials said.