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India Accelerates Key Hydropower and Water Management Initiatives on the Chenab River Amid Indus Waters Treaty Pause

India has taken significant steps to advance major infrastructure projects on the Chenab River system, committing nearly Rs 2,600 crore to two critical initiatives. These developments occur as the 1960 Indus Waters Treaty with Pakistan remains in abeyance, opening opportunities for greater utilisation of water resources in the northern Himalayan region.


The projects, executed by the National Hydroelectric Power Corporation (NHPC), focus on enhancing hydropower generation and improving water management efficiency. They form part of a broader effort to harness the hydropower potential of the Chenab basin while addressing long-standing challenges such as siltation and seasonal water variability.


The bigger of the two projects is the Rs 2,352 crore Chenab–Beas Link Tunnel Project in Lahaul-Spiti which envisages the construction of an 8.7-km-long tunnel to divert surplus water from the Chenab basin into the Beas river system. (PTI) | News18
The bigger of the two projects is the Rs 2,352 crore Chenab–Beas Link Tunnel Project in Lahaul-Spiti which envisages the construction of an 8.7-km-long tunnel to divert surplus water from the Chenab basin into the Beas river system. (PTI) | News18

Major Projects Launched

The primary project is the Rs 2,352 crore Chenab-Beas Link Tunnel Project in Himachal Pradesh’s remote Lahaul-Spiti district. This ambitious inter-basin transfer scheme involves the construction of an 8.7-kilometre tunnel designed to divert surplus water from the Chandra River, a key tributary of the Chenab, into the Beas River basin. The first phase also includes the building of a 19-metre-high barrage in the Lahaul valley. Located near Koksar village and upstream of the iconic Atal Tunnel at Rohtang, the project aims to optimise water distribution for irrigation and power generation across multiple states.


The second initiative is the Rs 268 crore sediment-bypass tunnel at the existing Salal Dam in Jammu and Kashmir. This engineering solution seeks to tackle chronic siltation issues that have gradually reduced the dam’s operational efficiency and power output over the years. By facilitating better sediment management, the project is expected to restore and sustain the dam’s long-term performance.


Additional Hydropower Developments in the Region

In parallel, authorities are fast-tracking several other hydropower projects across the Chenab basin. These include the Dulhasti Stage-II project in Kishtwar district, a 260 MW run-of-the-river extension to the existing Dulhasti Stage-I facility. Environmental clearance for this initiative was granted in late 2025, with expectations of generating approximately 803 million units of electricity annually. Other ongoing efforts encompass projects such as Kiru, Kwar, Ratle, Pakal Dul, and the large 1,856 MW Sawalkote project in Ramban district.


These initiatives are expected to substantially boost clean energy production in northern India, create employment opportunities in Jammu & Kashmir and Himachal Pradesh, and contribute to the region’s overall infrastructure development in strategically important Himalayan terrain.


Background on the Indus Waters Treaty

The Indus Waters Treaty, facilitated by the World Bank in 1960, has long served as the framework for sharing the waters of the Indus River system between India and Pakistan. Under the agreement, the eastern rivers (Ravi, Beas, and Sutlej) were allocated primarily to India, while the western rivers (Indus, Jhelum, and Chenab) were assigned mainly to Pakistan, with provisions allowing India limited uses for run-of-the-river hydropower and specific irrigation purposes.


India placed the treaty in abeyance in April 2025 following the Pahalgam terror attack in Kashmir. The government has maintained that engagement under the treaty framework would remain suspended until Pakistan takes credible and irreversible steps to address cross-border terrorism concerns. This position has provided India with greater flexibility to pursue water and energy projects that align with national development priorities.


Strategic Importance and Regional Impact

The accelerated projects on the Chenab reflect India’s focus on strengthening energy security and optimising water resources amid growing demands from population growth, agriculture, and industry. The Chenab basin holds significant untapped hydropower potential, which, once realised, could help reduce dependence on fossil fuels and support sustainable development in the northern states.


Pakistan has expressed concerns regarding potential downstream impacts on water availability for its agriculture. Indian authorities, however, emphasise that the projects are designed in compliance with sound engineering and environmental standards, primarily as run-of-the-river schemes that support national energy needs without violating the core principles of equitable water use.


The MGMM Outlook 

India’s decision to accelerate hydropower and water management projects on the Chenab River signals a decisive shift toward strengthening national resource sovereignty and long-term energy resilience. By investing in critical infrastructure such as the Chenab-Beas Link Tunnel and the sediment-bypass system at Salal Dam, the government is not only addressing long-standing technical and environmental challenges but also unlocking the untapped economic and strategic potential of the Himalayan river system. These projects reflect a broader commitment to sustainable development through clean energy expansion, improved irrigation efficiency, and stronger regional infrastructure.


The timing of these developments, following the suspension of the Indus Waters Treaty, highlights India’s intent to maximise lawful utilisation of its water resources while aligning infrastructure growth with national security priorities. Expanded hydropower projects across Jammu and Kashmir and Himachal Pradesh are expected to create jobs, improve energy independence, and reinforce India’s strategic presence in sensitive border regions. The move underscores a policy direction that places development, self-reliance, and resource optimisation at the centre of India’s long-term regional planning.


(Sources: Firstpost, News18, NDTV)


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