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Why Kashmir’s Grand Projects Keep Vanishing

Kashmir Observer

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AUGUST 22, 2025 ISSUE

From Sawalkote to Chenani-Nashri, a wave of cancelled tenders has stalled J&K’s infrastructure and left citizens disheartened while investors lose faith.

- Peerzada Mohsin Shafi

Development in Kashmir usually starts with big promises.

A new tunnel through the Pir Panjal, a road to boost tourism, or a hydropower project to fix winter blackouts is announced with excitement.

Tenders are issued, companies line up, and people begin to hope. Then, without warning, the projects disappear.

This cycle has hardened into a troubling pattern.

In recent months, the Sawalkote Hydroelectric Project, a massive 1,856 megawatt venture on the Chenab that could have transformed the region’s energy security, was abruptly withdrawn just weeks after its tender was announced.

The cancellation sent a clear signal: even flagship projects are not immune to disappearing before they take shape.

The Sawalkote project was meant to be a turning point.

Jammu and Kashmir, despite its immense hydropower potential of more than 20,000 MW, continues to face winter power cuts that leave homes cold and businesses stalled. A project of this scale would have created jobs, generated much-needed electricity, and attracted investors.

Instead, its abrupt cancellation reinforced a sense of drift in the region’s development agenda.

Sawalkote is not alone. The Singpora-Vailoo Tunnel, long awaited to connect Kashmir with the Chenab valley, saw its tender scrapped.

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