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| Suspension of IWT: Centre to expedite work on Kwar Dam, stop Chenab’s water to Pakistan | | |  Early Times Report
Jammu, July 13: In a strategic move amid escalating tensions with Pakistan, the Union Government is seeking a Rs 3,119 crore loan to fast-track the construction of the Kwar Dam—a key greenfield storage project on the Chenab River in Jammu and Kashmir’s Kishtwar district.
The decision comes in the aftermath of India suspending the Indus Waters Treaty (IWT) following the April terrorist attack in Pahalgam, where Pakistan-backed militants targeted tourists. The brutal ambush, which left 26 people dead—most of them identified and killed based on their religious identity—followed inflammatory remarks by Pakistan Army Chief General Asim Munir, who invoked communal rhetoric, declaring that Hindus and Muslims could not coexist peacefully.
The Pahalgam attack, widely condemned as a hate-driven massacre, further strained already fragile bilateral relations. In May, hostilities intensified when Indian forces reportedly targeted 9–12 terror launchpads in Pakistan-occupied Kashmir (PoK) and across the Line of Control. Pakistan retaliated with cross-border attacks on Indian border towns and military assets. India responded with overwhelming force, damaging Pakistan’s air defence systems and strategic installations, prompting Islamabad to seek a ceasefire.
Against this backdrop, India’s push to accelerate hydroelectric projects on western rivers governed by the now-suspended Indus Waters Treaty has gained urgency. Signed in the early 1960s, the treaty had survived three war The Centre is seeking a Rs 3,119 crore loan to fast-track the construction of the Kwar Dam.
This dam is a key greenfield storage project on the Chenab River in Kishtwar district.
The decision comes in the aftermath of India suspending the Indus Waters Treaty (IWT) following the April 22 terrorist attack in Pahalgam.
The Kwar Hydroelectric Project is being developed by Chenab Valley Power Projects Limited (CVPPL), a joint venture between NHPC and JKSPDC Ltd.
The Kwar Hydroelectric Project is being developed by Chenab Valley Power Projects Limited (CVPPL), a joint venture between NHPC Limited and Jammu & Kashmir State Power Development Corporation Limited. To fund the Rs 4,526 crore project, CVPPL has approached several financial institutions to secure the most competitive rates for the Rs 3,119 crore term loan.
Significant progress has already been made. In January 2024, the Chenab River was successfully diverted—an essential milestone that enabled the commencement of major dam works. Excavation of the 609-metre-long main access tunnel is also underway.
Located around 28 kilometres from Kishtwar town, the Kwar project involves the construction of a 109-metre-high concrete gravity dam. Once operational, the 540 MW plant is expected to generate 1,975 million units (MU) of electricity annually, substantially enhancing the region’s power capacity and supporting industrial development in Jammu & Kashmir.
Prime Minister Narendra Modi laid the foundation stone for the Kwar project in April 2022. The government aims to complete the project by 2027, ensuring timely delivery of key infrastructure amid a changing geopolitical and security landscape.
The successful commissioning of the Kwar Dam is poised to bolster India’s hydroelectric capacity, strengthen regional energy security, and assert its rights over western rivers amid shifting dynamics in India-Pakistan relations. |
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