India has granted environmental clearance for the 260-megawatt Dulhasti Stage-II hydropower project on the Chenab River in Jammu and Kashmir. This move, along with the earlier clearance for the Sawalkot project, signals a push to develop the region's hydroelectric potential. Pakistan has raised concerns, alleging a breach of the Indus Waters Treaty and lack of formal notification. India has rejected these claims, asserting the project is a run-of-the-river facility compliant with legal frameworks and within its rights.