State-owned hydropower major NHPC Ltd. has floated a ₹5,129 crore tender for major civil and hydro-mechanical works at its 1,856 megawatt Sawalkot hydroelectric project in Jammu and Kashmir, marking a key step in accelerating construction of one of India’s largest under-development hydro assets.
The company has invited online bids under domestic competitive bidding for the Lot-1 package of the project, which includes construction of diversion tunnels, coffer dams, access tunnels, dam works, associated roads and hydro-mechanical installations, according to the tender notice issued on February 5, 2026.
Estimated cost of the package
The estimated cost of the package is ₹5,129.03 crore, with a completion timeline of 108 months, or nine years. The bidding will follow a two-part technical and financial evaluation process along with an electronic reverse auction to finalise pricing.
NHPC has set the deadline for online bid submission as March 20, 2026, while techno-commercial bids are scheduled to be opened on March 24.
The scope of work under the Lot-1 package covers some of the most complex civil components of the project, including diversion tunnel construction adits, the Mandiyal Nalla diversion tunnel, coffer dykes and platforms, left and right bank access tunnels, spiral tunnels, dam structures and hydro-mechanical works essential for water control and flow regulation.
Qualification criteria
The tender specifies stringent qualification criteria, requiring bidders to demonstrate experience in large dam construction, long tunnel excavation and installation of heavy hydro-mechanical gates, alongside strong financial capacity. Companies must show average annual turnover of at least ₹604 crore over the past two years and working capital of not less than ₹95 crore.
The Sawalkot project, located in Ramban district on the Chenab river, is a key component of India’s push to harness hydropower potential in the Himalayan region. The acceleration of work on Chenab basin projects has gained strategic significance following India’s suspension of the Indus Waters Treaty with Pakistan last year after the Pahalgam terror attack, which sharply escalated diplomatic tensions.
Under the 1960 treaty, India has control over the eastern rivers — Ravi, Beas and Sutlej — while Pakistan receives most of the waters from the western rivers — Indus, Jhelum and Chenab — although India retains limited rights for hydropower generation on the western rivers. A senior government official said that the renewed focus on large hydro projects aims to fully utilise India’s permissible water rights while strengthening energy security.
“With storage-based hydro increasingly viewed as critical for balancing solar and wind power, projects such as Sawalkot are expected to play a central role in ensuring grid stability and round-the-clock clean electricity, while generating large-scale employment and infrastructure growth in the region,” the official added on the condition of anonymity.