Kishtwar’s Hydropower Revolution: Development, Energy Security And Local Challenges

Policy Update

Vishal Kumar

Background

Kishtwar district has emerged as a strategic centre for hydropower development in Jammu and Kashmir because of the hydropower potential of the Chenab River and its major tributary, the Marusudar River. Hydropower development in the district began with the commissioning of the 390 MW Dul Hasti Hydroelectric Project in 2007. For several decades, further expansion remained subject to the provisions of the Indus Waters Treaty (IWT), 1960. The treaty allocated the waters of the Chenab River to Pakistan. However, it permitted India to undertake “non-consumptive” uses, primarily through run-of-the-river hydropower generation.

A significant policy shift occurred following the terrorist attack in Pahalgam on 22 April 2025, which claimed the lives of 26 tourists. In response, India placed the Indus Waters Treaty in abeyance. The government also accelerated the implementation of all hydropower projects under construction in the Kishtwar region. This policy decision transformed the district into a “high-priority” region within India’s energy security framework. It also strengthened efforts to maximise India’s utilisation of the Indus basin waters within the existing policy framework.

Functioning

The hydropower development programme in Kishtwar is centred on four flagship projects. These include Pakal Dul (1,000 MW), Ratle (850 MW), Kiru (624 MW) and Kwar (540 MW). The projects are primarily implemented by Chenab Valley Power Projects Limited (CVPPL). It is a joint venture in which NHPC Limited holds a 51% equity stake and the Jammu and Kashmir State Power Development Corporation (JKSPDC) holds the remaining 49%. The operational framework is based on the following key components:

Storage vs. Run-of-the-River: Kiru, Kwar and Ratle are designed as run-of-the-river hydropower projects. In contrast, Pakal Dul is Jammu and Kashmir’s first major water storage project. It has a live storage capacity of approximately 109 million cubic metres (Mcm). This is substantially higher than the 30 mcm storage capacity of the operational Baglihar project.
Investment and Financing: The projects are supported by substantial central-sector investment. The Ratle project was revived under a joint venture model with an estimated cost of ₹5,281 crore. The combined sanctioned cost of the Pakal Dul, Kiru and Kwar projects exceeds ₹22,535 crore.
Advanced Engineering: Project construction incorporates advanced engineering technologies suited to the Himalayan terrain. These include Hard Rock Double Shield Tunnel Boring Machines (TBMs) for tunnel excavation in the Chenab Valley.
Timeline Reset: The government revised the implementation schedules of key hydropower projects following the suspension of the Indus Waters Treaty. Under the revised timeline, the Pakal Dul and Kiru projects are targeted for commissioning by the end of 2026.

Performance: The implementation of hydropower projects in Kishtwar has recorded steady engineering progress, although project-specific delays remain. Table 1 summarises the implementation status of the major projects, while Tables 2 and 3 highlight the key engineering milestones and project-specific developments.

Table 1. Performance Dashboard of Major Hydropower Projects in Kishtwar.

Source. Compiled by the author based on NHPC Limited, CVPPL, Ministry of Power, Government of India, Press Information Bureau (PIB) and Central Electricity Authority (CEA) reports.

Table 2. Key Engineering Milestones

Source. Compiled by the author based on NHPC Limited Annual Reports, Chenab Valley Power Projects Limited (CVPPL), Ministry of Power, Government of India, Press Information Bureau (PIB) and Central Electricity Authority (CEA) publications.

Table 3. Project-specific Highlights

Impact

The ongoing hydropower projects are expected to strengthen India’s energy security while generating significant economic benefits for the region. The combined installed capacity of the ongoing projects is expected to reach approximately 6,000 MW upon completion.

National Energy Security: The projects will enhance electricity supply to the northern regional grid. They are expected to improve power availability in Punjab, Haryana, Uttar Pradesh and Rajasthan while strengthening overall grid stability.
Regional Infrastructure Development: Hydropower development has accelerated infrastructure expansion in the district. Road travel time between Jammu and Kishtwar has declined from approximately seven hours to less than five hours. The district has also been included under the UDAAN scheme through the sanctioning of a regional airport.
Employment Generation: Government reports indicate that more than 6,200 local residents have been engaged through contractors during different phases of project implementation.
Strategic Sovereignty: Increased water storage capacity enhances India’s operational flexibility in managing river flows within the schema of the Indus basin. This has strengthened the strategic significance of hydropower infrastructure in the region.

Emerging Issues

The expansion of hydropower infrastructure has also highlighted several environmental, governance and socio-economic challenges.

“High Risk” Feasibility: A 2025 risk assessment classified the major hydropower projects in Kishtwar as “high risk” because of the potential threat of Glacial Lake Outburst Floods (GLOFs). The district contains 197 glacial lakes. The continued expansion of lakes such as Mundiksar and Hangu could increase the risk to downstream infrastructure and settlements.
The Power Paradox: Jammu and Kashmir continues to experience winter power shortages despite its substantial hydropower potential. The Union Territory also allocates approximately 6% of its annual budget, or about ₹8,200 crore, towards power purchases from external sources. This situation has been described as the “Power Paradox” in regional policy discussions.
Political Interference and Violence: Construction agencies, including Megha Engineering and Infrastructure Limited (MEIL), have reported instances of political interference in recruitment processes. Such interventions have contributed to labour disputes and implementation delays.
Displacement and Unemployment: More than 1,000 families have been affected by the ongoing hydropower projects. Although the Dul Hasti project provided employment opportunities to all affected families, the current Resettlement and Rehabilitation (R&R) plans for Pakal Dul, Kiru and Kwar do not provide permanent employment for Project-Affected Families (PAFs).
Environmental Fragility: Tunnel excavation, drilling and blasting are being undertaken in the geologically fragile Himalayan region, which is seismically active and highly susceptible to landslides and earthquakes. Experts have expressed concern that these interventions could increase long-term environmental vulnerability in the absence of appropriate mitigation measures, underscoring the need for resilient infrastructure planning and construction.

Way Forward

A comprehensive policy approach is required to balance energy security with environmental sustainability and local development. The following measures could strengthen the long-term sustainability of hydropower development in Kishtwar.

Disaster Mitigation: The government should establish an Early Warning System (EWS) in collaboration with the India Meteorological Department (IMD). Real-time monitoring of alpine lakes through Sentinel satellites and automated sensors would strengthen disaster preparedness and improve early warning capabilities.

Transparent Recruitment: A transparent recruitment framework should be implemented to reduce labour disputes and improve public confidence. The commitment to provide 100% reservation for local residents in unskilled employment should be implemented through regular monitoring and institutional oversight.

Revenue Sharing Reforms: A more equitable revenue-sharing mechanism and an enhanced allocation of free power to Jammu and Kashmir could help address the “Power Paradox”. Such measures would improve the distribution of economic benefits arising from hydropower development.

Ecosystem Restoration: Flood-resilient infrastructure and large-scale afforestation should be integrated into project planning. These measures would strengthen slope stability and reduce long-term landslide risks.

Institutional Accountability: Greater institutional oversight is required to minimise political interference and strengthen project implementation. Transparent governance mechanisms would improve accountability while supporting timely project completion

Kishtwar has the potential to emerge as a major hydropower centre within India’s energy transition. It can strengthen national energy security by integrating hydropower development with environmental sustainability, equitable benefit sharing and effective institutional governance.

References

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Akmali, M. (2025, September 2). Kishtwar’s Rs 22,535 Cr hydropower projects declared ‘high risk’. Greater Kashmir. https://www.greaterkashmir.com/front-page-2/kishtwars-rs-22535-cr-hydropower-projects-declared-high-risk/
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About the Contributor: Vishal Kumar is a Research & Editorial Intern at IMPRI. He is currently pursuing a master’s degree in Political Science at the University of Jammu, Jammu and Kashmir. His research interests include Political Economy, Public Policy, governance and political Philosophy.

Acknowledgement: The author would like to thank IMPRI and the reviewers for their valuable feedback, continuous support, and encouragement throughout all activities to date.

Reviewers: Riddhi Suthar and Sneha Sharma

Disclaimer: This article is intended for academic purposes only. The views expressed are those of the author and do not necessarily reflect the views of IMPRI or any government institution.