 "Water flows on the banks of Chenab River with the Baglihar hydroelectric project in the background, about 155 km northwest of Jammu. India is conducting a feasibility study to construct a 113 km-long canal to redirect surplus flow from the three western rivers of the Indus water system to Punjab, Haryana and Rajasthan. File photo/Reuters")
The Indian government is seeking a loan of Rs 3,119 crore to expedite the construction of the Kwar Dam , a significant greenfield storage project on the Chenab River in Kishtwar, Jammu and Kashmir, CNN-News18 reported.
The move comes in the wake of India’s decision to pause the Indus Water Treaty , raising concerns in Pakistan about the potential impact on downstream water flows. The treaty was put in abeyance following a terrorist attack in Jammu and Kashmir’s Pahalgam in April, when Pakistan-backed gunmen ambushed tourists at a popular meadow in the Valley.
Twenty-six people were killed, 26 of them being tourists, as terrorists selected their victims after ascertaining their religious identity. This happened days after Pakistan Army chief Asim Munir gave a hate speech at a gathering in Pakistan, saying Hindus and Muslims were two nations which could not live peacefully together. Hindus are a significant minority community in Pakistan, forming over two per cent of its population. The terrorist attack in Pahalgam was seen in the context of Munir’s hate speech.
The bilateral relations between India and Pakistan have worsened since then, with the two countries engaging in a four-day military clash in May after Indian forces hit some 9-12 terror sites in Pakistan-occupied Kashmir (PoK) and Pakistan, which retaliated with attacks on Indian border cities and military installations. India responded with significant force, inflicting serious damage to Pakistan’s air defence systems and other military installations, leading Islamabad to seek a ceasefire.
India had already suspended the Indus Waters Treaty of the early 1960s, which had survived three wars — 1965, 1971 and 1999.
It is against this backdrop, India’s decision to speed up the Kwar hydroelectric project gains significance. The project is being executed by Chenab Valley Power Projects Limited (CVPPL), a joint venture between NHPC Limited and the Jammu & Kashmir State Power Development Corporation Limited.
Impact Shorts
More ShortsThe CVPPL has approached several financial institutions and banks to secure the most competitive interest rates for a Rs 3,119 crore term loan, which will partly finance the 540 MW project. The total cost of the project is estimated at Rs 4,526 crore, according to information obtained by CNN-News18.
A major milestone for the project was achieved in January 2024, when the diversion of the Chenab River was successfully completed. This critical step has enabled the commencement of the main dam works, which are currently underway. Notably, excavation of the 609-metre-long main access tunnel has also begun, marking significant progress on multiple fronts.
The Kwar project, situated approximately 28 kilometres from Kishtwar town, involves the construction of a 109-metre-high concrete gravity dam. Once operational, it is expected to generate 1,975 million units (MU) of electricity annually.
Prime Minister Narendra Modi laid the foundation stone for the project in April 2022. The government is making concerted efforts to ensure the timely completion of key milestones, aiming for the project’s completion by 2027.
The successful commissioning of the Kwar hydro-electric project is likely to boost energy availability in the region and accelerate industrial growth both in Jammu & Kashmir.