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.