The contract for execution of the project was signed by the Norwegian Prime Minister Jens Stoltenberg and former Chief Minister Farooq Abdullah on April 21, 2001.

The Sawalkot hydro-power project has been sanctioned for implementation by the Board of the Jammu And Kashmir Power Development Corporation thrice and twice by the state government but the project could not be implemented.

The Sawalkot Consortium, consists of SPAS, HCC Group and Ozaltin Construction & Industry Co.

“Prime Minister Manmohan Singh is very keen that development works especially in the power sector in the Kashmir Valley should be taken up on top priority and that is the reason it has been decided to revive this 1200 MW project which is one of the most economical hydro projects with a lowest tariff of Rs.1.88 per Kwh on completion in 2014,” Union Minister of State for Power Jairam Ramesh, said.