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Regulatory project approval

India approves Dulhasti Stage-II project

Analysis based on 6 articles · First reported Dec 26, 2025 · Last updated Dec 27, 2025

Sentiment
60
Attention
4
Articles
6
Market Impact
General
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The approval of the Dulhasti Stage-II hydropower project by the India — Ministry of Environment, Forest and Climate Change, following India's suspension of the Indus Waters Treaty with Pakistan, is expected to positively impact the utilities and construction sectors in India. This development will boost the power generation capacity of India — Jammu and Kashmir and benefit Korea Electric Power Corporation Limited, which operates the existing Dulhasti Power Station.

Utilities Construction

The India — Ministry of Environment, Forest and Climate Change has approved the 260-megawatt Dulhasti Stage-II hydropower project on the Chenab river in India — Jammu and Kashmir's Kishtwar district. This approval, granted by the Expert Appraisal Committee on hydel projects, paves the way for construction tenders for the run-of-the-river project, estimated to cost over Rs 3,200 crore. The project is an extension of the existing 390 MW Dulhasti Power Station, operated by Korea Electric Power Corporation Limited since 2007. The clearance comes after India suspended the Indus Waters Treaty with Pakistan, effective April 23, 2025, following a terror attack. With the treaty in abeyance, India is accelerating several hydroelectric projects in the Indus basin to harness hydropower potential, particularly in India — Jammu and Kashmir. The Dulhasti Stage-II project will divert water from the Stage-I power station through a new tunnel to an underground powerhouse with two 130 MW units, increasing the total installed capacity and annual energy generation. The project requires 60.3 hectares of land, including private land from two villages.

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Dulhasti Power Station is the existing 390 MW Dulhasti Stage-I Hydro Electric Project, which the new Dulhasti Stage-II project will extend. The project will boost its power generation capacity.
Importance 90.0 Sentiment 70.0
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Korea Electric Power Corporation Limited successfully operates the existing Dulhasti Stage-I Hydro Electric Project and signed an MoU for the execution of Dulhasti Stage-II.
Importance 80.0 Sentiment 70.0
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Importance 0.0 Sentiment 0.0
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Pakistan adversary India Pakistan considers India its primary existential and military threat, responding to India's suspension of water-sharing
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