India Approves Dulhasti Stage-II Hydropower Project on Chenab, Raising Indus Water Treaty Concerns

India has approved the Dulhasti Stage-II hydropower project on the Chenab River in the Kishtwar district of occupied Jammu and Kashmir, a move Pakistan considers a violation of the Indus Water Treaty. The hydroelectric project is designed to generate up to 260 megawatts of electricity and represents a major expansion of infrastructure on one of the western rivers governed by the treaty.

The Dulhasti Stage-II project is estimated to cost 3,277.45 crore Indian rupees, with construction expected to begin early next year. The project will be developed by India’s public sector power producer NHPC Limited, further intensifying concerns over water management and treaty compliance between India and Pakistan.

Under the Indus Water Treaty, the waters of six rivers in the Indus basin are shared between the two countries. Pakistan holds primary rights over the western rivers, including the Chenab, Jhelum and Indus, while India controls the eastern rivers of the Sutlej, Beas and Ravi. Any hydroelectric activity on the western rivers is subject to strict technical and legal limitations.

India’s approval of the project comes amid heightened tensions following New Delhi’s decision to keep the Indus Water Treaty in abeyance after the Pahalgam incident, which triggered cross-border clashes between the two nuclear-armed neighbours. The situation escalated further after India carried out strikes inside Pakistan, leading to retaliatory action by Islamabad.

Despite India’s actions, Pakistan has reiterated its commitment to the Indus Water Treaty and confirmed that it will continue to participate in the Neutral Expert proceedings in good faith. Earlier, in August, the Permanent Court of Arbitration ruled that India must allow the waters of the western rivers to flow freely for Pakistan’s unrestricted use.