A Ministry of Environment panel has cleared the 260-megawatt Dulhasti Stage-II hydropower project on the Chenab river in Jammu and Kashmir’s Kishtwar district, officials said on Saturday.

The approval comes amid India’s suspension of the Indus Waters Treaty with Pakistan following the deadly Pahalgam terror attack in April this year.

The Expert Appraisal Committee (EAC) on hydel projects granted the clearance at its 45th meeting earlier this month, enabling the floating of construction tenders for the run-of-the-river project, which is estimated to cost over Rs 3,200 crore.

As per the meeting minutes, the panel observed that the waters of the Chenab basin are shared by India and Pakistan under the provisions of the Indus Waters Treaty, 1960, and that the project’s parameters had been planned in line with the treaty.

“However, the Indus Water Treaty stands suspended effective from April 23, 2025,” the panel noted.

When the treaty was operational, Pakistan had rights over the Indus, Jhelum and Chenab rivers, while India exercised rights over the Ravi, Beas and Sutlej. With the agreement now in abeyance, the Centre is moving ahead with multiple hydroelectric projects in the Indus basin, including Sawalkote, Ratle, Bursar, Pakal Dul, Kwar, Kiru, and Kirthai I and II.

Dulhasti Stage-II is proposed as an extension of the existing 390 MW Dulhasti Stage-I Hydroelectric Project, which has been operational since its commissioning in 2007 by the National Hydroelectric Power Corporation Limited.

Under the proposal, water will be diverted from the Stage-I power station through a separate tunnel measuring 3,685 metres in length and 8.5 metres in diameter, forming a horseshoe-shaped pondage for the second stage.

The project design includes a surge shaft, a pressure shaft and an underground powerhouse with two 130 MW units, giving it a total installed capacity of 260 MW along with annual power generation.

The total land requirement has been estimated at 60.3 hectares, including 8.27 hectares of private land to be acquired from two villages — Benzwar and Palmar — in Kishtwar district.