The Cabinet Committee on Economic Affairs has approved ₹4,526.12 crore for the construction of 540 MW Kwar Hydroelectric projects located on Chenab River in Jammu & Kashmir's Kishtwar district. The project is a part of the Indus basin and would be one of the four projects coming up in the district. Other projects include the 1,000 MWs Pakal Dul hydroelectric project and 624 MWs run-of-the-river Kiru hydroelectric project.
Under the 1960 vintage Indus Water Treaty (IWT) between India and Pakistan, the two countries share the waters of six rivers in the Indus basin that flow through India towards Pakistan. Of these, India has complete rights over three eastern rivers - Sutlej, Beas and Ravi, while Pakistan has rights over the western rivers - Chenab, Jhelum, and Indus. India can, however, build run-of-the-river projects on the western rivers. Over the last five years, the government has been on an approval and construction spree to fully tap the potential in the Indian side of the Indus basin implemented by Chenab Valley Power Projects Private Ltd (CVPPL), a joint venture company between NHPC and Jammu & Kashmir State Power Development Corporation (JKSPDC) with equity contribution of 51 per cent and 49 per cent respectively.
The project will generate 1,975.54 million units in a 90 per cent dependable year. The Kwar Hydro Electric Project is expected to be commissioned within 54 months and the power generated from the project will help in balancing the grid and will improve the power supply generation capacity in the country.