From Pahalgam to the dam: India’s massive Rs 3,394 cr answer to terror is ready to run dry in Pakistan

In a significant move following the suspension of the Indus Waters Treaty (IWT), India is getting close to finishing the Shahpur Kandi Dam. This dam will stop the flow of surplus water from the Ravi River into Pakistan. Jammu and Kashmir Jal Shakti Minister Javed Ahmed Rana confirmed on Wednesday that the project is proceeding rapidly and is expected to be fully operational by March 31.

Strategic shift: Impact on Pakistan

The completion of the dam marks a key change in India’s water diplomacy. While the Ravi is an Eastern river, over which India has full rights, historical infrastructure gaps have allowed a significant amount of unused water to flow into Pakistan.

The squeeze: Pakistan relies on the Indus system for nearly 90% of its agriculture. It now faces a major water crisis just before the summer season.

Domestic priority: Minister Rana stated that the water will be redirected to irrigate over 37,000 hectares in the drought-prone Kandi belts of Kathua and Samba (J&K) and parts of Punjab.

The Shahpur Kandi Project: A 45-year legacy

Conceived in 1979, the project has taken decades to develop.

National importance: Declared a national project in 2008, it was revived in 2018 due to direct intervention from the PMO after years of disputes between states.

Cost & scale: Built at a cost of about Rs 3,394 crore, the 55.5-meter-high dam will not only provide irrigation but will also generate 206 MW of hydropower for Punjab.

Operation Sindoor and the ‘Abeyance’ of the IWT

The acceleration of the Shahpur Kandi Dam is closely linked to India’s tougher stance on cross-border terrorism.

The catalyst: After the Pahalgam terror attack on April 22, 2025, which killed 26 people, India officially suspended the 1960 Indus Waters Treaty.

Operation Sindoor: This military and diplomatic strategy, which was highlighted at the 2026 Republic Day Parade, asserts that “blood and water cannot flow together.”

Beyond ravi: With the treaty suspended, India has also sped up major projects on the Western Rivers (Chenab and Jhelum). This includes the 1,856 MW Sawalkote project and the Tulbul Navigation Project, both of which were previously delayed due to Pakistani objections.

Global and regional fallout

The move has prompted strong reactions at the United Nations Security Council (UNSC). India recently criticized Pakistan for “weaponising” the narrative. Indian representatives argued that the treaty was made in good faith, which Pakistan has violated through years of sponsored terrorism.

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