Big Win For India on Indus Water Treaty

The Indus Waters Treaty (IWT), signed in 1960 between India and Pakistan, governs the distribution and usage of the waters of the Indus River System, which includes the Indus, Chenab, Jhelum, Beas, Ravi, and Sutlej rivers. The treaty was brokered by the World Bank and was intended to resolve disputes between the two countries over water resources, particularly in the aftermath of the partition in 1947.

Under the terms of the IWT, the Eastern Rivers (Beas, Ravi, Sutlej) were allocated to India, while Pakistan controls the Western Rivers (Indus, Chenab, Jhelum). India has the right to use 20% of the water from the Western Rivers for purposes such as irrigation, transport, and power generation, but must allow the rest of the water to flow freely to Pakistan.

However, the treaty’s provisions have led to several disputes over time, particularly regarding the construction of hydroelectric projects by India on the Western Rivers, which Pakistan contends violate the treaty’s terms.

What is the Indus Water Treaty?

The Indus Waters Treaty (IWT) was signed on September 19, 1960, between India and Pakistan. The treaty allocates the rights to the use of water from the Indus River System between the two nations:

• India’s Rights: India has unrestricted use of the Eastern Rivers (Beas, Ravi, Sutlej) and is allowed to use a limited share of the Western Rivers (Indus, Chenab, Jhelum) for irrigation, power generation, and transport purposes, as long as the flow is not significantly obstructed.
  
  
• Pakistan’s Rights: Pakistan controls the Western Rivers and is entitled to the unrestricted use of water from the Indus, Chenab, and Jhelum Rivers.
  

The treaty also lays down a dispute resolution mechanism, where disputes are first addressed by the Indus Commissioners of both countries. If unresolved, they can be escalated to a Neutral Expert appointed by the World Bank. If the dispute remains unresolved after this, it can be taken to the Permanent Court of Arbitration (PCA) in The Hague.

What is the Dispute?

The current dispute arises from the construction of two hydroelectric projects by India in Jammu and Kashmir:

1. Kishenganga Hydroelectric Project: Located on the Kishenganga River, a tributary of the Jhelum.
2. Ratle Hydroelectric Project: Located on the Chenab River.

Both projects are run-of-the-river schemes, meaning they do not significantly alter the flow of the rivers but generate electricity by harnessing the natural flow of the water.

Pakistan has objected to the design features of these projects, claiming that they would affect the natural flow of water in the Western Rivers and thereby violate the provisions of the Indus Waters Treaty. In 2015, Pakistan requested the appointment of a Neutral Expert to examine its concerns. However, in 2016, Pakistan withdrew this request and sought to escalate the matter to the Permanent Court of Arbitration (PCA).

Despite Pakistan's move, the World Bank proceeded with two parallel processes: one involving the Neutral Expert and another involving the PCA. India continued to participate in the Neutral Expert process, claiming it was consistent with the treaty.

The Expert’s Decision and Its Significance

The Neutral Expert, Michel Lino, was tasked with adjudicating the dispute between India and Pakistan over the design of the two hydroelectric projects. The Neutral Expert held three meetings and visited the sites of the Kishenganga and Ratle projects to assess the claims of both parties.

In his decision, released on January 7, 2025, the Neutral Expert ruled that he was competent to adjudicate on all the differences raised by Pakistan regarding the projects, affirming India's position. Pakistan had contested that the issues raised did not fall under the scope of the Neutral Expert’s authority as outlined in the treaty. However, the Neutral Expert found that all the points of difference between the two countries were indeed within his mandate under the treaty.

This decision is significant for several reasons:

• It vindicates India’s stance that the projects comply with the terms of the Indus Waters Treaty and that the Neutral Expert has the authority to make a binding decision.
• The decision reaffirms the importance of treaty-based dispute resolution mechanisms and discourages the bypassing of the Neutral Expert process in favor of other forms of arbitration, like the PCA.
• It upholds the integrity of the Indus Waters Treaty as a framework for resolving water-related disputes, which is critical for maintaining peace and cooperation between the two nuclear-armed neighbors, India and Pakistan.

In essence, the Neutral Expert’s decision provides a legal victory for India, reinforcing the treaty's provisions and setting a precedent for future water-related disputes between India and Pakistan under the IWT.