The Jammu & Kashmir (J&K) government is negotiating with the Centre and NHPC for a stake and revenue share in the 1,856 MW Sawalkot hydropower project on the Chenab River, valued at Rs 22,700 crore.

NHPC has already spent Rs 973 crore on the detailed project report. J&K may pursue the project through its power arm, JKPDC, or via the Chenab Valley Power Projects joint venture (JV), in which JKPDC holds a 44.71 percent stake. The project could be commissioned by 2033 if approved swiftly.

The move follows India’s suspension of the 1960 Indus Waters Treaty with Pakistan. The Centre now aims to develop dams and storage projects for flood control and energy across the Indus, Jhelum, and Chenab rivers. J&K's current hydropower capacity is over three GW—far below its 18,000 MW potential. The region is also expanding inland waterway infrastructure and launching new navigation projects on major rivers to boost connectivity and development.