India launches Rs 2,600-crore projects amid Indus Treaty Freeze
Babushahi Bureau
New Delhi, May 22, 2026: India has initiated work on two major infrastructure projects linked to the Chenab river system, including a large inter-basin water diversion tunnel in Himachal Pradesh and restoration work at the Salal Dam in Jammu and Kashmir, in a move seen as strategically significant amid renewed focus on utilisation of western river waters.
According to a report by News18, the projects together are estimated to cost nearly ₹2,600 crore and will be undertaken by the National Hydroelectric Power Corporation (NHPC).
The larger of the two initiatives is the proposed ₹2,352-crore Chenab–Beas Link Tunnel Project in Himachal Pradesh’s Lahaul-Spiti region. The project involves construction of an 8.7-kilometre tunnel designed to divert surplus water from the Chenab basin into the Beas river system.
Officials familiar with the development reportedly said the project forms part of a broader strategy to improve India’s utilisation of water from the western rivers governed under the Indus Waters Treaty framework.
As part of the proposal, hydraulic structures and tunnels will channel water from the Chandra river, a tributary of the Chenab, toward the Beas basin. A 19-metre-high barrage is also planned in the Lahaul valley during the first phase of construction.
The project site lies close to the strategically important Himalayan belt near the Atal Tunnel and Koskar village in Lahaul-Spiti, an area where India has rapidly expanded transport and energy infrastructure in recent years.
The second project focuses on restoring sediment management capability at the Salal Dam on the Chenab river, a move expected to improve the dam’s operational efficiency and hydro-management capacity.
The developments come at a time when India has intensified efforts to optimise usage of waters from the Indus, Jhelum, and Chenab rivers. Under the 1960 Indus Waters Treaty, India retained limited but important rights over the western rivers, including construction of run-of-the-river hydroelectric projects and certain non-consumptive uses.