Centre considering new hydropower projects, including in J&K’s Sawalkot: Union Power Secretary Pankaj Agarwal
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India is moving forward with hydropower projects in Jammu and Kashmir, including the Sawalkot dam, following the suspension of the Indus Waters Treaty. This development comes amid heightened tensions after the 2025 Pahalgam attack and ongoing diplomatic disputes with Pakistan.
Strategic Expansion of Hydropower in Jammu and Kashmir
In a significant policy shift, Union Power Secretary Pankaj Agarwal has confirmed that the Indian government is actively considering the development of new hydropower projects in Jammu and Kashmir, with a specific focus on the Sawalkot dam. This announcement marks a pivotal moment in India’s infrastructure strategy, aiming to leverage the region's vast hydroelectric potential to bolster both local energy security and the national power grid. By prioritizing these projects, the Centre signals a commitment to economic development in the region, despite the complex geopolitical sensitivities involved.
The Collapse of the Indus Waters Treaty (IWT)
The current push for these projects occurs against the backdrop of the 1960 Indus Waters Treaty (IWT) being placed in abeyance. This historic framework, which governed water-sharing between India and Pakistan for over six decades, saw its effectiveness reach a breaking point following the devastating 2025 Pahalgam attack. The loss of 26 civilian lives in this incident prompted a severe re-evaluation of bilateral agreements, leading India to suspend the treaty. This suspension has effectively removed the previous constraints on India’s ability to initiate large-scale water infrastructure projects in the Indus basin.
Addressing Pakistan's Objections
Pakistan has consistently raised objections regarding the Sawalkot dam project, with formal complaints lodged in July 2025 and February 2026. Islamabad had sought formal consultations, arguing that such projects could infringe upon their water rights under the erstwhile treaty. However, with the IWT now in abeyance, India’s stance has hardened. Secretary Agarwal’s statement indicates that the government intends to proceed with the Sawalkot development in the near future, effectively bypassing the consultation mechanisms that previously stalled progress.
National Energy Goals and Economic Impact
Beyond the geopolitical friction, the Sawalkot project is framed by the government as a critical asset for India’s energy transition. The Power Secretary emphasized that these projects are designed to meet not only the local electricity demands of Jammu and Kashmir but also to supply power to other states across the country. By tapping into the high-altitude, high-volume flow of the Chenab river, India aims to increase its renewable energy portfolio, reducing reliance on fossil fuels and stabilizing power supply in a rapidly industrializing economy.
Future Trends and Regional Stability
Looking forward, the acceleration of these hydropower projects suggests a new era of infrastructure development in Jammu and Kashmir, untethered from the restrictive clauses of the 1960 treaty. This strategy is likely to invite further diplomatic friction with Pakistan, which views the construction of dams on the Chenab as an existential threat to its own agricultural water supply. As India continues to integrate the region more deeply into its national infrastructure network, the international community will be closely watching whether these developments lead to a permanent shift in the regional status quo or if new diplomatic frameworks emerge to address water-sharing concerns in the absence of the IWT.
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