Cross the boulders in the Indus Waters Treaty Premium

The Indus Waters Treaty, which has again become a source of contention between India and Pakistan, considerably encapsulates the principle of equitable allocation

The Indus Waters Treaty (IWT), brokered by the World Bank, which has again become a source of contention between India and Pakistan, considerably encapsulates the principle of equitable allocation rather than the principle of appreciable harm. Both India and Pakistan are granted exclusive rights to utilise the waters of the rivers allocated to them without harming others’ interests. Under the IWT, India has unrestricted use of the three eastern rivers (Ravi, Beas, and Sutlej), while Pakistan enjoys similar rights over the three western rivers (Indus, Jhelum, and Chenab). India is allowed to store 3.60 million-acre feet (MAF) (0.40 MAF on the Indus, 1.50 MAF on the Jhelum and 1.70 MAF on the Chenab) of water. The sector-wise allocation is 2.85 MAF for conservation storage (divided into 1.25 MAF for “general storage” and 1.60 for “power storage”) and an additional 0.75 MAF for “flood storage”.

The core of the issue now between India and Pakistan involves the Kishanganga and Ratle hydroelectric power plants in India’s Jammu and Kashmir.

India considers these projects crucial for energy needs and the region’s development, while Pakistan has raised objections, citing violations of the treaty and potential negative effects on its water supply which goes against the provisions outlined in Annexure D of the treaty.

Pakistan first raised its concerns over the Kishanganga project in 2006 and the Ratle project on the Chenab in 2012. In 2010, the dispute on the Kishanganga project was taken to the Court of Arbitration (CoA). Pakistan contended that India’s plan is not in line with Article III, Article IV (6) and Paragraph 15(iii) of Annexure D of the IWT. In 2013, the CoA delivered the final judgment, ruling that the Kishanganga hydroelectric project is a run-of-river dam, and India, under the IWT, can divert water from the river Kishanganga/Neelum for power generation.

However, the court stated that India has to maintain a minimum flow of water in the Kishanganga/Neelum river to nine cusecs (cubic metre of water per second).

After the CoA’s judgment, the two countries reached an amicable resolution on only one out of four issues that were expected to be resolved. Despite several rounds of talks between the Indus Water Commissioners, Delhi and Islamabad could not resolve the other three matters relating to pondage and spillway configuration. Consequently, Pakistan went to the World Bank accusing India of violating the IWT and the court’s verdict. Islamabad also raised objections to the Ratle project.

In 2016, Pakistan requested the World Bank to form a CoA. To this, India requested a neutral expert be appointed to deal with the dispute. At that time, the World Bank paused the works on the Kishanganga and Ratle projects “to allow the two countries to consider alternative ways to resolve their disagreements”. Despite the pause, works on the Kishanganga continued, and, in 2018, Prime Minister Narendra Modi inaugurated the Kishanganga project. A day before Mr. Modi’s visit to Jammu and Kashmir, at least nine people were killed on both sides of the border in firing by security officials from the two sides. Pakistan raised its concerns with the World Bank. In October 2022, the World Bank appointed Michel Lino as the neutral expert and Professor Sean Murphy as Chairman of the CoA.