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India Eyes New Hydro Projects in J&K Post Indus Treaty Suspension

India is accelerating plans to develop new hydropower projects with large water storage capacities on the Indus, Jhelum, and Chenab rivers in Jammu & Kashmir and Himachal Pradesh following its suspension of the Indus Waters Treaty (IWT) with Pakistan. The decision follows the April 22 Pahalgam terrorist attack and is seen as a strategic response to control the flow of water into Pakistan.

The upcoming projects are expected to include low-level sluice gates and larger reservoirs—features not allowed under the IWT. This marks a shift from the traditionally built run-of-the-river plants. The only current reservoir-based project, Pakal Dul on the Marusudar River, has a storage capacity of 0.09 MAF. Cumulatively, India has identified 2.23 MAF of storage capacity across new projects, including Pakal Dul, Bursar, Wardwan, Gyspa, and Ratle.

Union Power Minister Manohar Lal has directed NHPC and the J&K administration to fast-track stalled or under-construction hydro projects. India’s hydropower generation currently contributes just 9% to the energy mix, but new multipurpose projects in Ladakh’s Zanskar Valley and Leh are being seen as crucial for irrigation, flood control, and energy security. The untapped hydro potential in the Indus basin is estimated at 32.32 GW, with 12 GW yet to be developed at a cost of Rs1.2-1.5 trillion.