India Launches ₹22,704 Crore Sawalkote Hydroelectric Project Tenders.

In a major strategic move following the abeyance of the Indus Waters Treaty (IWT) with Pakistan, India has floated international tenders for the construction of the 1,856 MW Sawalkote hydroelectric project on the Chenab River. The project, designated as being of national importance, is estimated to cost ₹22,704.8 crore and will be developed in two stages.

This development is seen as a significant effort to optimize India's utilization of the Indus waters. The IWT allows India a portion of the waters from the "western rivers," which are under Pakistan’s control, for specific uses.

The Sawalkote project has faced significant delays for decades due to a number of challenges, including objections from Pakistan under the IWT framework, as well as regulatory and administrative hurdles. These included compensation for 13 villages, the relocation of an Army transit camp in Ramban, and obtaining environmental clearances for forest land.

Decades of Delay

Jammu & Kashmir Chief Minister Omar Abdullah, who also serves as the power minister, noted the project's long and troubled history. "The project was originally conceived in the 1980s, but it was shelved after some time," he told the Times of India. "In 1996, Farooq Abdullah attempted to revive it with the help of a Norwegian consortium but that effort didn't succeed. Later, during my previous tenure, we tried to initiate the project again, but it encountered certain hurdles." He added that the project was completely shelved during the tenure of the Mufti Mohammad Sayeed government.

The tendering process was initiated by NHPC, with a deadline for online bids set for September 10.

Ramban MLA Arjun Singh Raju was the first to announce the news, calling it a "landmark moment for the region." He praised the Chief Minister, saying, "It's a proud moment, and credit goes to the CM, who fought relentlessly for it."

Earlier this month, the Forest Advisory Committee had granted "in-principle" approval for the diversion of 847 hectares of forest land, clearing a crucial regulatory hurdle for the project to finally move forward.