NHPC and J&K Sign 500 MW Hydropower Expansion Deal — IWT Dividend

India-backed NHPC and the J&K State Power Development Corporation (JKSPDCL) signed an implementation agreement in Jammu for two new hydroelectric projects: Uri-I Stage-II (240 MW) on the Jhelum River and Dulhasti Stage-II (260 MW) on the Chenab River. Both projects will be built on a Build-Own-Operate-Transfer (BOOT) basis for 40 years, with electricity to be supplied to J&K at preferential rates. The deal was explicitly linked to J&K's hydropower development push enabled by India's suspension of the Indus Waters Treaty. Under the old IWT framework, India faced severe restrictions on storage and run-of-river projects on western rivers flowing into Pakistan. Pakistani analysts described the accelerated dam construction as further weaponization of the Indus basin following Operation Sindoor.