New delhi is moving forward with a significant hydroelectric project on the Chenab River, a key waterway within the Indus River system. The $67.7 million Saavalkot project-fast-tracked by the Modi government-represents a firm response to the recent suspension of the Indus Waters Treaty and escalating tensions with Pakistan following reported cross-border attacks. This undertaking, planned in the Udhampur and Ramban districts of Jammu and Kashmir, signals a potential shift in India’s approach to water-sharing agreements with its neighbor.
New Delhi – India has initiated a major hydroelectric project on the Chenab River, a key tributary of the Indus, in a move seen as a strong response to Pakistan’s withdrawal from the Indus Waters Treaty. The project, estimated to cost $67.7 million (5,129 crore rupees), is located in the Udhampur and Ramban districts of Jammu and Kashmir, News 18 reported.
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The Saavalkot project, which the Modi government is reportedly fast-tracking, marks the first large-scale infrastructure undertaking greenlit after India’s decision to revisit the treaty. The project aims to generate 1,406 megawatts of power in its first phase, with an additional 450 megawatts planned for a second phase. Construction is planned between the Baglihar and Salal hydroelectric projects on the Chenab River.
National Hydroelectric Power Corporation (NHPC) Limited issued a request for proposals on February 5 for companies to bid on the project, according to reports. NHPC is prioritizing the swift completion of the project, with plans for construction methods and equipment selection already underway. Last October, an expert committee within India’s Ministry of Forest and Environment granted approval for an 1,856-megawatt project in the region, and the government has also directed the acceleration of other hydroelectric projects along the Chenab River.
The move comes after India rejected rulings issued by the Hague-based Court of Arbitration (CoA) regarding a dispute with Pakistan over the Indus Waters Treaty. India has maintained that the court’s proceedings are legally untenable and does not recognize its authority or rulings. As a result, the government has indicated it will not submit documents or participate in arguments before the court.
India suspended the Indus Waters Treaty on April 23, following a terrorist attack carried out by Pakistan-based militants in Pahalgam on April 22, 2025. The suspension signaled India’s firm stance that cooperation on water sharing is contingent on Pakistan taking action against terrorism. Pakistan’s agriculture sector relies heavily on the Indus River system, with an estimated 80-90% of its farming dependent on its waters. Currently, water levels in Pakistan’s major reservoirs, Tarbela and Mangla, are critically low, and India’s actions are likely to exacerbate the situation.
Published: 08 Feb 2026, 03:15 pm IST
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