Delhi: India has moved a step closer to expanding its hydropower footprint in Jammu and Kashmir with environmental clearance granted for the Dulhasti Stage-II project on the Chenab river. The approval comes at a time when the Indus Waters Treaty with Pakistan remains in suspension, reshaping how New Delhi approaches water and energy development in the Indus basin.
Officials said the green signal was given by the Expert Appraisal Committee (EAC) on hydroelectric projects functioning under the Ministry of Environment. The decision was taken during the panel’s recent meeting, allowing authorities to begin the tendering process for the 260-megawatt run-of-the-river project in Kishtwar district. The estimated cost of the project is over ₹3,200 crore.
In its deliberations, the committee acknowledged that the Chenab river falls within a basin historically governed by the Indus Waters Treaty of 1960. However, it also recorded that the treaty has been placed in abeyance since April 23, 2025, following the terror attack in Pahalgam earlier this year. This shift has enabled the Centre to fast-track multiple hydropower proposals on rivers previously subject to treaty constraints.
The Dulhasti Stage-II project is designed as an extension of the existing Dulhasti Hydroelectric Power Station, which has been operational since 2007 with an installed capacity of 390 MW. The new phase will channel water from the current facility through a separate tunnel stretching nearly 3.7 kilometres, leading to a newly created pondage system.
Project plans include the construction of underground infrastructure such as a surge shaft, pressure shaft and a powerhouse equipped with two units of 130 MW each. Once operational, the facility is expected to contribute significantly to power generation in the region while strengthening grid stability in Jammu and Kashmir.
Land acquisition for the project will span just over 60 hectares, including a small portion of privately owned land in the villages of Benzwar and Palmar in Kishtwar. Officials said rehabilitation and compensation measures will be carried out in line with existing policies.
With the treaty suspended, the Dulhasti expansion joins a list of major hydel projects — including Sawalkote, Ratle and Pakal Dul — that the Centre is actively pursuing in the Indus river system. Together, these initiatives signal a renewed focus on harnessing river resources for energy security and regional development amid evolving geopolitical circumstances.