Hydropower’s development in the Himalayas region is major concern because area is prone to the geo hazards. The high vulnerability of physical landscape pays attention on the planning of hydropower’s projects. This qualitative empirical research in western Himalayas, present the vulnerability of region and impacts of hydroelectric projects on physical landscape. The IPCC frame work of vulnerability assessment was used to assess the vulnerability in upper Sutlej valley. The indicator based methodology and Geographic information System (GIS) & Remote Sensing (RS) applications were adopted to highlight the impacts and vulnerability. The strategic buffering equal distance analysis was done and this indicates the ignorance of hydropower planning processes. The GIS mapping indicated the excessive development of hydroelectric projects in single river valley and strategic planning emphasizes to follow aerial equidistance between two projects while introducing hydropower projects in the Sutlej valley or any other valleys of the Himalayas region. The suggested strategy shall control the physical, social and economic losses in study region. In addition, this strategy will work as guidelines to develop hydropower projects in other valleys of the Himalaya.