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Environment Ministry Set to Clear ₹31,380 Crore Sawalkot Hydropower Project on Chenab River

Written by: Team Angel OneUpdated on: 10 Oct 2025, 8:12 pm IST
India’s environment ministry recommends clearance for the ₹31,380 crore Sawalkot hydropower project with 1,856-MW capacity on the Chenab River.
Environment Ministry Set to Clear ₹31,380 Crore Sawalkot Hydropower Project on Chenab River
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The government is poised to grant environmental clearance for the massive ₹31,380 crore Sawalkot hydroelectric project on the Chenab River in Jammu and Kashmir. The project is being steered by NHPC and is strategically aligned with India’s revised approach following the suspension of the Indus Waters Treaty.

Sawalkot Hydropower Project to Add 1,856 MW Capacity

The 1,856-MW Sawalkot project is structured as a run-of-the-river scheme and will be executed in 2 phases across Ramban, Reasi, and Udhampur districts. Stage 1 includes 6 units of 225 MW each and 1 unit of 56 MW, totalling 1,406 MW. Stage 2 will contribute 450 MW from 2 additional units. The total cost stands at ₹31,380 crore and will cover an area of 1,401 hectares.

Infrastructure and Environmental Compliance

The project features a 192.5-metre-high concrete dam, an underground powerhouse, an upstream intake channel, and a return system to release water back into the Chenab River. The environment ministry's expert committee has imposed several conditions, such as the establishment of a dedicated environmental management team, online e-flow monitoring, and a post-commissioning impact study after 5 years.

Strategic Shift in Utilising Western Rivers

The project holds key importance due to inadequate water storage in India fromthe  western rivers. Out of the 3.6 million acre-feet of usable allocation under the suspended Indus Waters Treaty, India currently lacks sufficient facilities to fully exploit it. Till now, only 3,482 MW of hydropower potential has been harnessed from these resources, compared to an estimated 20,000 MW capacity.

Read More: India Surpasses 125 GW Solar Capacity, Ranks 3rd Globally!

Project Approvals and Committees Involved

The environmental appraisal committee granted its clearance during its September 26, 2025, meeting. However, NHPC must still obtain forest clearance under the Forest (Conservation) Act, 1986, and, if applicable, from the National Board for Wildlife. The Union Territory government also has final administrative formalities pending before construction begins.

Conclusion

The Sawalkot hydropower project represents a critical step in India's strategy to maximise its share of water from western rivers. With a capacity to generate 1,856 MW and backed by environmental safeguards, this project is poised to strengthen energy infrastructure while addressing ecological concerns and geopolitical imperatives.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.

Published on: Oct 10, 2025, 2:42 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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