The Indian government is seeking a Rs 3,119 crore loan to fast-track the construction of the Kwar Dam. This is a major hydroelectric project on the Chenab River in Kishtwar, Jammu & Kashmir. The project is seen as strategically important, especially after India paused its participation in the Indus Waters Treaty with Pakistan.

The 540 MW greenfield project is being developed by Chenab Valley Power Projects Ltd (CVVPL). This is a joint venture between NHPC Ltd and the J&K State Power Development Corporation. CVVPL is in talks with financial institutions to secure the loan at competitive rates. The total project cost is Rs 4,526 crore.

A breakthrough came in January 2024 with the successful diversion of the Chenab River. This allowed the main dam construction to begin. Other ongoing work includes the excavation of a 609-metre-long access tunnel.

The project includes a 109-metre-high concrete gravity dam. It is expected to generate around 1,975 million units (MU) of electricity every year. Prime Minister Narendra Modi laid the foundation stone in April 2022. The government aims to complete the project by 2027.

Once completed, the Kwar project is expected to boost energy supply and promote industrial growth. This will be both nationally and in Jammu & Kashmir. The dam site is about 28 km from Kishtwar town.

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