Prime Minister Narendra Modi laid the foundation stone of the Kwar Hydro Electric Project on April 24, 2022. The project is located on the Chenab River in Kishtwar, Jammu and Kashmir. It is part of a broader effort to harness the region’s hydropower potential.
Loan Requested to Accelerate Construction
The central government has approached banks and financial institutions to raise a ₹3,119 crore term loan to fast-track the project’s construction. This loan will partially finance the total ₹4,526 crore cost of the 540 MW Kwar Hydroelectric Project. Officials are reportedly seeking the most competitive interest rates for the loan.
Project Details and Current Progress
The Kwar project is a run-of-river hydroelectric plant that will include a 109-metre-high concrete gravity dam. Water will be diverted through four large penstocks to an underground powerhouse. The powerhouse will have four turbine-generator units, each with a capacity of 135 MW.
The project is being developed by CVPP (Chenab Valley Power Projects), a joint venture formed in 2011 between the Government of India and the Government of Jammu & Kashmir. In January 2024, the Chenab River was successfully diverted, allowing for the start of excavation and dam construction.
Impact of Indus Water Treaty Pause
This development comes amid India’s decision to pause the Indus Waters Treaty, a decades-old agreement with Pakistan that governs the sharing of water from the Indus Basin rivers. The move followed the Pahalgam terror attack on April 22, 2024, in which 26 people lost their lives.
The Kwar project, located within this strategic river basin, gains added importance in light of these geopolitical changes, reinforcing India’s focus on energy security and resource control.
Benefits of the Kwar Hydroelectric Project
The timely completion of the Kwar project, expected by May 2026, will significantly increase energy availability in the region. This is expected to boost industrial growth in Jammu & Kashmir and strengthen India’s clean energy transition by reducing dependence on fossil fuels.
The hydropower project will also support local development through job creation, improved infrastructure, and economic activity. Situated about 28 km from Kishtwar, the project is one of several major initiatives in the Chenab basin. Together, these projects have a combined capacity of over 3,000 MW and are set to play a key role in enhancing India’s power generation and energy security.
