The hydropower potential from these rivers and streams has been estimated to be in the range of 11000 MW.

The Chenab River Basin by itself has the largest potential, with an estimated capacity for development of 8000 MW (at 60% load factor). The 964-Km (599 miles) Chenab River rises in the Himalayas in Himachal Pradesh and after traversing 144 Kms, it enters into Jammu & Kashmir State and flows generally southwest upto Akhnoor near the Paksitan border. Eight HydroPower projects with total capacity of 5320 MW have already been identified along its track in Jammu and Kashmir State. Baglihar is one of such projects with ultimate installed capacity of 900 MW to be developed in two stages of 450 MW each. However, only about 10% of this formidable renewable source of energy on Chenab has been exploited upto now.

Hydroelectric Power, particularly from run-of-the-river schemes, provides an environment friendly, non-polluting and renewable source of energy. With the limitation on storage of water on Chenab imposed by the Indus Water Treaty of 1960, it is the best solution to meet energy as the daily peak load demands by a relatively small daily ponding capacity. Lower maintenance costs, no fuel, and longer plant life make Hydro Power the most economical solution in the long run with a dramatic decrease in the tariff for sale of power as the initial capital cost gradually gets paid up. This is specially so incase of the mountainous strata of Jammu and Kashmir with abundant water resources from a series of perennial river basins. Jai Prakash SNC-Lavalin (JSL) has been observing with great interest the Government of Jammu and Kashmir's determination to develop renewable energy projects for meeting the current demand and for exploiting commercially the Hydro Power potential of the state. In the sector, Baglihar (450 MW) HydroPower project stage-I is one of the state's most promising and conveniently located projects with suitable geological conditions.

Under the overall development plan of Chenab Basin, this project was investigated earlier by Central Water Commission and a project report was also prepared in the year 1984 by Planning and Investigation Organization of Central Water Commission.

The surface and sub-surface geological investigations were carried out at the site during 1962-1978, in association with Geological Survey of India. The topographical surveys were also carried out by Survey of India during 1972 for the dam area and the PowerHouse area. The project was transferred to National HydroElectric Power Corporation (NHPC) in 1987. NHPC updated the project cost in 1989. NHPC also carried out some further investigations and started the construction of approach road to PowerHouse. It has been gathered that no further investigations have since been carried out on the project after the year 1990. The approach road to PowerHouse, which was partly excavated in initial reaches, was also not completed. During the year 2000, the construction of said project is handed over to JSL.

(a) Forest Area 6971.06 Kanals.
(b) Cultivable Area 1383.00 Kanals
(c) Shamlat Land 420.08 Kanals
(d) State Land 4220.03 Kanals

The Baglihar Hydro Electric Project is very crucial to ensure the sustainable development of the economy of the people of J&K. It is also essential to have appropriate and effective Resettlement; Rehabilitation and Reconstruction policies for those displaced due to development projects. It is the endeavour of Grievances Redressal Authority to reconcile both these development strategies into a harmonious and integrated development strategy, which provides benefits of development to all the participants in that process.