NHPC Proposed 8.7km Tunnel to Divert Himalayan Water
The proposed ₹2,352 crore water diversion project faces significant regulatory and environmental scrutiny.
Updated on Sept. 28, 2026 in Utilities
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NHPC proposed the construction of an 8.7km tunnel designed to divert water from the Chandra river to the Beas basin. This infrastructure project carries a cost of ₹2,352 crore and affects water flow across the Pir Panjal mountains.
Why it matters
The proposal has triggered international regulatory concerns, specifically regarding potential violations of the Indus Waters Treaty. Local stakeholders also cite increased flood risks in the Chandra and Beas valleys as a major operational and safety barrier.
The proposed Chenab-Beas link project is budgeted at ₹2,352 crore. It requires the construction of an 8.7km tunnel to re-route river water across the Pir Panjal range.
The players
NHPC
An Indian government-owned hydropower company that manages large-scale water and power infrastructure projects.
The details
The project intends to link the Chandra river, which currently flows to the Chenab, with the upper Beas basin through an 8.7km tunnel. This diversion mechanism creates complex cross-border regulatory risks, as Pakistan has raised objections claiming it breaches the Indus Waters Treaty. Local environmentalists and residents have also highlighted potential flood risks in the Lahaul and Spiti district and surrounding valleys.
Timeline
September 28, 2026: Article publication date.
Market Landscape
Large-scale water diversion projects in the Himalayas often face intense scrutiny under the terms of the Indus Waters Treaty. This proposal follows a pattern of heightened cross-border tensions regarding the management of shared river basins.
Operators in the region should monitor the legal status of the Indus Waters Treaty, as any ruling could halt infrastructure development. Suppliers and contractors involved in the project must account for significant project delays due to ongoing environmental and international litigation.
The takeaway
Large-scale utility projects in sensitive basins carry immense geopolitical and environmental risk that can stall operations for years. Monitor treaty-related arbitration reports to gauge the viability of upcoming water infrastructure bids.
Further reading
For context on the sector, see Utilities.
Source note: This article includes information reported by The Times of India.
Live Poll
Should the government prioritize new water diversion projects despite potential increased flood risks?
