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Centre fast-tracks Chenab dam project; Pakistan to face heat  
The project is being executed by CVVPL

Centre fast-tracks Chenab dam project; Pakistan to face heat  

Jul 11, 2025
06:13 pm

What's the story

The Indian government is seeking a ₹3,119 crore loan to expedite the construction of the Kwar Dam on the Chenab River in Jammu and Kashmir's Kishtwar district, News18 reported. The project is being executed by Chenab Valley Power Projects Limited (CVVPL), a joint venture of NHPC Limited and Jammu & Kashmir State Power Development Corporation Limited. This will be a greenfield storage project that could change the flow of water to Pakistan.

Project details

Project to have 540 MW capacity

The CVVPL has sought competitive interest rates from banks for this term loan. The Kwar Hydro Electric Project is a storage-type project with a 540 MW capacity. It includes a 109m high concrete gravity dam on the Chenab River. The total cost of the project is estimated at ₹4,526 crore, and its annual generation capacity will be 1975 MU. Prime Minister Narendra Modi laid its foundation stone on April 24, 2022.

Construction progress

River Chenab diversion completed in January 2024

A major milestone in the construction of the Kwar Dam was achieved in January 2024 with the diversion of the Chenab River. This diversion is crucial, as it allows for excavation and construction activities to begin at the dam site. The river diversion is expected to expedite project construction activities and minimize delays, helping meet the government's efforts for early completion by 2027.

Energy impact

Project to boost energy availability in J&K

The completion of the Kwar Dam project is expected to improve energy availability in J&K and accelerate industrial growth. It will also add significantly to India's power generation capacity and help achieve clean energy transition goals. The projects are likely to boost socio-economic development in J&K through job creation and infrastructure development.