MC EXCLUSIVE India to commission 2 power projects on Chenab in 2026, contractors summoned

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In a push to fast-track hydropower projects in Jammu and Kashmir following its move to suspend the Indus Waters Treaty, the Centre is gearing up to commission at least two plants , Pakal Dul and Kiru, being built on the Chenab river, by next year.

The power ministry has summoned contractors who are building five hydropower projects, including Pakal Dul and Kiru, in the union territory to step up work and avoid delays, power secretary Pankaj Agarwal told Moneycontrol.

“We do intend to expedite hydropower projects in the region (J&K and Ladakh). The ministry of power has undertaken a detailed review with the contractors of under construction projects as well in order to accelerate them and avoid further delays,” the power secretary said.

The two NHPC projects have a total capacity of 1,624 megawatts (MW). The 1,000 MW Pakal Dul hydro-electric plant (HEP) is being built on the Marusudar river, a tributary of the Chenab river, in Kishtwar and Kiru is a 624 MW plant.

As part of its multi-pronged action against Pakistan following the Pahalgam terror strike in which 26 people were killed, India put the Indus Waters Treaty (IWT), which governed the sharing of waters of Indus and its five main tributaries — the Jhelum, Chenab, Ravi, Beas, and Satluj. Two of the terrorists involved in the attack were Pakistani citizens.

The Chenab, one of the three “western rivers” identified in the IWT, starts in the Himalayas near the Baralacha Pass in Himachal Pradesh, where it is known as Chandrabhaga, and flows into the Indus at Mithankot in Pakistan.

Of all the power projects in India, hydropower plants take the longest time (seven-11 years or even more) to get going. This is because of geological factors, delays in clearances and frequent objections from the locals.

“Delivering under-construction projects is our top priority now, as they are past the phase which take the longest time such as geological studies, public hearings with locals, clearances, etc,” said a second ministry official said.

“These projects are directly under our control. So, any kind of slippage (delays) will no longer be accepted, unless there’s some technical safety concern or natural calamity, which the J&K region is prone to. The ministry will be closely monitoring these projects.”

Moneycontrol has written to Pakal Dul contractors Afcons and L&T and will update the copy when they respond.

Patel Engineering, which is building Kiru and Kwar projects, did not respond to Moneycontrol’s queries.

3 years, 5 hydroprojects

The 1,000 MW Pakal Dul project will be the biggest HEP in J&K and Ladakh. Currently, Baglihar is the biggest project in the region with a capacity of 900 MW.

Both Pakal Dul and Kiru are expected to be commissioned in the second quarter of FY27.

Next up would be the Parnai and Kwar HEPs, which are expected to be commissioned in the second and third quarters of FY28.

Parnai is a smaller 38 MW project on the Suran tributary of the Jhelum and is being executed by the Jammu & Kashmir State Power Development Corporation Limited. Since J&K is a union territory, the power ministry will monitor its progress.

Also Read: Flushing of Salal and Baglihar dams reduces water flow to Pakistan, Kishanganga next.

The 850 MW Ratle HEP on the Chenab will be the last one to be commissioned of all the five under-construction projects in J&K. It is expected to be ready by the third quarter of FY29.

Long-term plan

The government is not only looking at approving more hydel projects but is also planning to review its policy to have an incentive mechanism to promote this clean form of power generation.

The ministry has been deliberating on redrafting its hydropower policy for at least two years now. But the focus, so far, was on exploiting the hydro potential of the northeastern region.

After the Pahalgam attack and suspension of the IWT, the government’s focus is back on the Indus River system.

The suspension allows India to work on projects without informing Pakistan, which has been a hurdle in the past. Pakistan on several occasions didn’t allow desilting of reservoirs of dams built on these rivers. The treaty required India, the upper riparian state, to keep Pakistan  informed about the ebbs and flows of the river waters.

Also Read: Arunachal Pradesh to emerge as hydropower hub with projects worth Rs 1 lakh crore in the pipeline.

The incentives that have been discussed include grant for new projects. These could also include budgetary support for infrastructure such as roads and transmission lines. Water cess or tax waivers could also be considered, ministry officials said, adding a final decision is yet to be taken.

India’s biggest hydropower generation company, NHPC Ltd, has expedited the feasibility studies of projects in Jammu and Kashmir such as Sawalkot (1,856 MW), Kirthai-II (800 MW), Dhulasti stage-II (260 MW) and an extension of the existing Uri-I HEP.