Srinagar, April 11: A controversial hydroelectric project opposed by Pakistan and stalled by militancy is getting off the ground, quietly.

The 330-MW Kishanganga plant has been in limbo for nearly two decades. Pakistan didn’t want it to come up for fear it would harm another project — a 969-MW plant it is building in the Neelam Valley across the LoC.

It also opposed the diversion of water from the Kishanganga river, saying the Indus Water Treaty it signed with India did not permit such changes in river flow.

Now, the tide is turning. The National Hydroelectric Power Corporation (NHPC), which is building the unit, has lowered the height of the dam to be built as part of the project by 40 metres to 37 metres. As a result, the threat of submergence on Gurez — a picturesque resort home to Shina-speaking Dard inhabitants — has finally receded.

“Only one village, Wadwun, will be affected. The people there will be settled in Gurez, if they agree,” an NHPC official said.

A smaller dam will have other benefits, too. The project will now cost Rs 2,400 crore, down from Rs 3,200 crore, but its installed capacity will stay unchanged at 330 MW.

A source of worry is that Jammu and Kashmir’s share will be only 18 per cent, of which 12 per cent will be free.

“This is a great relief for us because much of Gurez will be spared the onslaught,” said Nazir Ahmad, the area MLA who was spearheading the campaign against the project.

“If the project had been built to its original design, it would have displaced 25,000 Dard tribesmen in 20 villages. But we want the affected people from Wadwun to be properly compensated,” he insisted.

Tenders for construction have been already been floated and some big corporate houses have applied. “We are in the process of finalising the contracts,” the official said.

Work on a 24-km tunnel, one of the many planned in the project, has started. “We have completed 250 metres so far,” the official said. The tunnel will divert water from the Kishanganga in Gurez to Bandipore, where it will be harnessed for power before being channelled into Wullar Lake. Colonies for employees are also coming up, and a 32-km road is being laid from Bandipore to Gurez.

Much of Pakistan’s objections are over the tunnel. Since the water diverted to the Wullar Lake eventually flows into the Jhelum, it amounts to manipulating the flow of rivers, Pakistan argues, adding that this infringes on its rights over the Chenab, Indus and Jhelum under the river treaty. The spat revives memories of the Baghlihar project, over which the two countries have bickered for years.

However, Madhav Lal, a secretary in the Jammu and Kashmir government, plays down the opposition. “I am not aware of reservations expressed by Pakistan. The Kishanganga project was cleared by the Centre and the state.”