The 330 MW Kishan Ganga Power Project(KGPP) in the border area of Gurez in north Kashmir district of Bandipora will be ready by 2016.
Against Rs 3642 crore sanctioned for the KGPP, which also witnessed protests by the locals and objection by Pakistan, an amount of Rs 1637.73 crore has been only utilised so far.
Officials on Wednesday said that out of 23 km-long tunnel, ten km tunnel has been completed and work was going on a war-footing to meet the deadline.
However, locals alleged that the entire area, including the rivers and other water bodies, got polluted as the chemical and other material used for tunnel boring was going straight into the water, which was being used by the population of several villages.
Meanwhile, Union minister of state for power Venugopal Rao accompanied by minister of state for power Shabir Ahmad Khan and other authorities made an extensive tour of Bandipora on Tuesday and inspected the Dam site.
During the visit, people of the area put forth various demands which include provision of better power supply, employment to unemployed youth in the power project.
The ministers ensured them that their genuine demands would be considered sympathetically.
They sought people's cooperation in the execution of the power project which they said was in progress for overall development of the area.