New Delhi, June 15 -- India has started work on three hydropower projects in Jammu and Kashmir, entailing a combined investment of around $3 billion, as the government looks to use excess water domestically for electricity generation instead of letting it flow into Pakistan.

The three projects-two on the Chenab river and one on the Jhelum - have a total capacity of 2.35 gigawatts (GW), enough to meet the peak power needs of about 2.5 million consumers, according to three people aware of the development.

The investment is part of the government's broader push to accelerate hydropower development in the region, against the backdrop of India placing the Indus Waters Treaty (IWT) with Pakistan in abeyance following last year's terrorist att...