India’s Ministry of Environment has authorised the 260MW Dulhasti Stage-II hydropower project, which will be built on the Chenab River in the Kishtwar district in Jammu and Kashmir (J&K) region.
The decision, taken by the Expert Appraisal Committee for hydropower projects, allows for the next step of issuing construction tenders for the run-of-the-river scheme, with an estimated cost of over Rs32bn ($356mn), according to Press Trust of India (PTI) report.
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The Dulhasti Stage-II project will be an extension of the 390MW Dulhasti Stage-I, which has been operational since 2007.
The new stage will utilise water diverted from Stage-I via a 3.7km tunnel, which will feed a reservoir designed specifically for Stage-II.
The setup includes a pressure shaft, a surge shaft and an underground powerhouse housing two 130MW turbines, for a total capacity of 260MW.
For the project, the land required totals 60.3ha, of which 8.27ha will be sourced from private land in the villages of Benzwar and Palmar, also in Kishtwar district.
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By GlobalDataThis approval follows the suspension of the Indus Waters Treaty with Pakistan following the Pahalgam terror attack in April 2025.
The Expert Appraisal Committee stated that, “the Indus Water Treaty stands suspended effective from 23 April 2025.”
The project is part of India’s broader efforts to harness hydropower potential in the region following changes to the water-sharing arrangements between India and Pakistan.
In September this year, Statkraft divested its 49% stake in the hydropower joint venture (JV) Malana Power Company to the Indian conglomerate LNJ Bhilwara Group.
The deal included the company’s interests in the 86MW Malana and 192MW Allain Duhangan hydropower plants, both situated in Himachal Pradesh, India.
