India is turning the tap—and the turbines. In a landmark decision with far-reaching geopolitical and environmental consequences, the Union Cabinet has given the green light to the 260 MW Dulhasti State-II hydel project on the Chenab River in Jammu and Kashmir. This approval comes on the heels of India’s effective suspension of the 1960 Indus Waters Treaty (IWT)—a move that has already sent shockwaves through diplomatic corridors in Islamabad .
The project, an expansion of the existing 390 MW Dulhasti Power Station, is more than just an energy initiative. It’s a clear signal that India intends to assert full control over its allocated share of western river waters—particularly the Chenab, which accounts for over 70% of the total flow in the Indus basin .
Table of Contents
- What Is the Dulhasti State-II Chenab Hydel Project?
- Why Did India Suspend the Indus Waters Treaty?
- The Strategic Significance of Tapping the Chenab
- How Pakistan Is Likely to Respond
- Energy Gains vs. Environmental Costs
- Can India Legally Build on the Chenab?
- What’s Next? India’s Pipeline of Western River Projects
- Final Thoughts: Water, Power, and Geopolitics
- Sources
What Is the Dulhasti State-II Chenab Hydel Project?
Located in the Doda district of Jammu & Kashmir, the Dulhasti State-II project will add 260 MW of clean, renewable energy to the national grid. It leverages the existing Dulhasti dam infrastructure, drawing water through a new underground powerhouse to minimize surface disruption .
Key features include:
- Capacity: 260 MW (run-of-the-river design)
- Estimated Cost: ₹2,800 crore (approx. $335 million)
- Timeline: Construction to begin in 2026, full commissioning by 2030
- Benefit: Will power over 1 million homes and reduce CO₂ emissions by 700,000 tons annually
This project is part of India’s broader push to develop 30,000+ MW of hydropower potential in J&K by 2035 .
Why Did India Suspend the Indus Waters Treaty?
The IWT, brokered by the World Bank in 1960, allocated the three eastern rivers (Ravi, Beas, Sutlej) to India and the three western rivers (Indus, Jhelum, Chenab) to Pakistan—with a crucial caveat: India could use the western rivers for “non-consumptive” purposes like hydropower, as long as it didn’t reduce or delay water flow .
However, after decades of Pakistan raising objections to every Indian hydel project—even those fully compliant with the treaty—India has grown frustrated. The final trigger was Pakistan’s repeated misuse of the treaty’s dispute resolution mechanisms to stall projects like Kishenganga and Ratle .
In late 2025, India declared it would no longer be “constrained” by the treaty’s spirit, effectively putting it on hold while it reviews all future water-sharing arrangements .
The Strategic Significance of Tapping the Chenab
The Chenab isn’t just any river. Flowing over 900 km through J&K before entering Pakistan-administered Kashmir, it’s the largest tributary of the Indus. India currently utilizes less than 20% of its allowable hydropower potential on the river.
By fast-tracking projects like Dulhasti State-II, India achieves three strategic objectives:
- Energy Security: Boost renewable capacity in a power-hungry nation.
- Geopolitical Leverage: Signal to Pakistan that water cooperation is conditional on regional peace.
- Regional Development: Bring investment and jobs to a historically marginalized region.
How Pakistan Is Likely to Respond
Pakistan has already condemned the move, calling it a “violation” of the IWT. However, legally, India’s project design complies with the treaty’s technical parameters—it’s a run-of-the-river plant with no significant storage, meaning water flow isn’t reduced .
Still, Islamabad may escalate the issue at international forums or seek World Bank mediation. Yet with the U.S. and EU increasingly supportive of India’s right to development, Pakistan’s diplomatic options are narrowing .
Energy Gains vs. Environmental Costs
While hydropower is clean, large dams in fragile Himalayan ecosystems carry risks:
- Seismic activity in the Chenab basin could threaten dam safety.
- Altered river flow may impact downstream aquatic life and agriculture.
- Displacement of local communities remains a concern.
Experts urge transparent Environmental Impact Assessments (EIAs) and robust community consultation—steps often rushed in strategic projects.
Can India Legally Build on the Chenab?
Yes. According to the Indus Waters Treaty text, India is permitted to construct run-of-the-river hydropower plants on the western rivers with certain design constraints (e.g., limited pondage, no reservoir storage) .
The Dulhasti State-II project adheres to these rules. Pakistan’s objections are largely procedural, not substantive—often used as a delay tactic rather than a legal challenge.
What’s Next? India’s Pipeline of Western River Projects
Dulhasti State-II is just the beginning. India has a robust pipeline:
- Bursar (800 MW) – Chenab, awaiting final clearance
- Pakal Dul (1,000 MW) – Chenab tributary, under construction
- Kiru (624 MW) – Chenab, construction started in 2023
For deeper insights on regional water politics, see our analysis at [INTERNAL_LINK:indus-basin-disputes].
Final Thoughts: Water, Power, and Geopolitics
The approval of the Chenab hydel project marks a turning point. India is no longer playing defense on water rights. It’s asserting its sovereign right to develop resources within its territory—within legal bounds, but without apology.
While environmental and diplomatic sensitivities must be managed carefully, the message is clear: in the high-stakes game of Himalayan hydropower, India is turning on the lights—and the pressure.