IWT Paused, Infra Fast-Tracked, Pakistan Irked: A Look At India’s Projects On Chenab

Last Updated:February 08, 2026, 18:38 IST

Indus Waters Treaty (IWT) in abeyance: A look at the infrastructure projects taken up by India

As India placed the Indus Waters Treaty (IWT) in abeyance in April 2025 following the Pahalgam attack, it has shifted from a policy of “restraint" to one of “strategic execution".

By treating the treaty as suspended, India is no longer following data-sharing or prior-notification requirements with Pakistan for new or existing projects on the Chenab River.

What is the Indus Waters Treaty (IWT)?

The IWT is a landmark water-sharing agreement signed on September 19, 1960 between India and Pakistan, brokered by the World Bank. It established a framework for managing and distributing the waters of the Indus River system, which has remained largely functional despite decades of regional conflict.

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The treaty divides the six major rivers of the Indus basin into two groups:

Eastern Rivers (Ravi, Beas, Sutlej): Allocated to India for unrestricted use.

Western Rivers (Indus, Jhelum, Chenab): Allocated to Pakistan.

India is permitted limited “non-consumptive" use of these rivers for domestic, agricultural, and run-of-the-river hydroelectric power generation, provided it follows strict design specifications to avoid harming Pakistan’s interests.

It provides for a Permanent Indus Commission (PIC), abilateral body with a commissioner from each country tasked with data exchange, annual meetings, and initial conflict resolution. In case of disputes, it has a three-tiered mechanism starting with the PIC, followed by a Neutral Expert for technical issues, and finally an ad-hoc Court of Arbitration for major disputes.

IWT in abeyance

As India held the IWT in abeyance, it has halted meetings of the Permanent Indus Commission and fast-tracked projects on western rivers (like Ratle and Pakal Dul) without the previously required technical notifications to Pakistan.

It has also rejected rulings from the Court of Arbitration, which India currently labels as “illegal."

New And Fast-Tracked Projects

Sawalkote HEP (1,856 MW): This is the first major new project to receive a “green light" post-IWT halt. On February 5, 2026, NHPC invited international tenders worth ₹5,129 crore for its construction. It has been designated a “Project of National Importance" and will be the largest in J&K once completed (estimated 9-year timeline).

Dulhasti Stage-II (260 MW): Approved by a Ministry of Environment panel in December 2025. This project is an extension of the existing Stage-I and was cleared specifically under the logic that IWT notification requirements are currently void.

Pakal Dul HEP (1,000 MW): Being fast-tracked for a “non-negotiable" commissioning deadline of December 2026. Crucially, this is India’s first storage project on a western river, giving it the ability to regulate water flow timing into Pakistan.

Kiru (624 MW) & Kwar (540 MW): Both are run-of-the-river projects being accelerated. Kiru is targeted for December 2026, while Kwar is now set for March 2028.

Ratle HEP (850 MW): Long-contested by Pakistan, this project’s construction is now being treated as a sovereign decision. It is being fast-tracked for a 2028 completion.

The Infrastructure Upgrades

India has initiated desilting and reservoir enhancement at the Salal and Baglihar projects to improve storage and power generation, activities previously restricted by the treaty.

Since the halt, India has reportedly restricted or fluctuated water flows from existing dams like Baglihar and Salal. In May 2025, downstream flows at Pakistan’s Marala headworks reportedly dropped by up to 90% during maintenance operations.

In June 2025, India initiated a feasibility study for a 113-km canal to divert surplus water from the Chenab basin in J&K toward the Ravi and Beas systems in Punjab and Rajasthan.

With Agency Inputs

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