New Delhi, July 15 -- India is upping the ante in the conflict over terrorism with Pakistan by planning new hydropower projects with large water storage capacity on the Indus, Jhelum, and Chenab rivers, said two people close to the development.

The new projects are likely to have enhanced storage capacities with low-level sluice gates that were not allowed under the Indus Waters Treaty (IWT) between the two nations.

"The government is looking at tapping the full potential of the rivers in the Indus basin. New projects are being considered in Jammu and Kashmir (J&K) and Himachal Pradesh, along with the possibility of raising the reservoir capacity of ones in the planning stage," said one of the two people cited above, both of whom spoke ...