J&K: Dulhasti Stage-II on Chenab set to be completed in 44 months

The 260 MW Dulhasti Hydro Electric Project Stage-II in Kishtwar district of Jammu and Kashmir is expected to be completed within 44 months, the government informed the Rajya Sabha on Monday after the project received key statutory and investment approvals.

The hydropower project will be constructed on the Chenab River, one of the three western rivers allocated to Pakistan under the Indus Waters Treaty, which India has currently suspended.

The project is also likely to become the first hydropower project on a western river to be completed after India suspended the treaty following the 2025 Pahalgam terror attack.

Replying to a question by MP Sajjad Ahmad Kichloo, Minister of State for Power Shripad Naik told Parliament that the Central Electricity Authority approved the Detailed Project Report (DPR) for the project on May 26, 2025.

Subsequently, environmental clearance for the project was granted on January 7, 2026. The minister said forest clearance is not required as the project does not involve the use of forest land.

The Board of Directors of NHPC Limited granted investment approval for the project on February 20, 2026.

Land acquisition for the project is being carried out in accordance with the provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The government said all eligible benefits for Project Affected Families (PAFs) have been incorporated in line with the rehabilitation and resettlement scheme prescribed under the Act.

Earlier, Dulhasti Phase-I, NHPC Limited, and the Jammu and Kashmir State Power Development Corporation Limited signed a memorandum of understanding on January 3, 2021, to implement the project on a Build-Own-Operate-Transfer basis.

According to the government, the decision was taken after considering operational efficiency, cost-effectiveness, ease of construction and operation, and economies of scale.

The government also said that jobs have been provided to project-affected families in connection with the existing Dulhasti Power Station, and there are currently no pending employment cases related to affected families.

The 390 MW Dulhasti Power Station, developed by NHPC Limited, has been operational since April 2007. The project was financed through equity, loans and market borrowings, and electricity generated from the plant is sold at tariffs determined by the Central Electricity Regulatory Commission.

A significant portion of the revenue generated from the project is used for operation and maintenance, debt servicing and other obligations, while NHPC’s earnings from the project are limited to the return on equity.