Last week, India said it would not join proceedings initiated by Pakistan at the Permanent Court of Arbitration over two hydropower projects in Kashmir. It said that Pakistan's move to reach out to the Hague-based tribunal was illegal as it was already being addressed by neutral expert under the Indus Water Treaty.
But what is this Indus Waters Treaty? Let us take a close look.
What is the Indus Waters Treaty?
It is a treaty signed between India and Pakistan in 1960 that allocates the water of six rivers between the two countries. It was signed by then Prime Minister Jawaharlal Nehru and Pakistan's then-president Mohammad Ayub Khan after nine-year-long negotiations.
According to the deal, eastern rivers, namely Ravi, Beas and Sutlej, have been given to India for unrestricted use. On the other hand, western rivers, namely Indus, Jhelum and Chenab, have been given to Pakistan.
India has also been given the right to generate hydroelectricity through the run of river projects on the western rivers. However, Pakistan can raise objections to the design of Indian hydropower projects on these rivers.
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What is the issue?
The current disagreement between India and Pakistan revolves around the design features of the Kishenganga and Ratle hydropower projects. Both of these are located in Kashmir. Kishenganga was inaugurated in 2018, and Ratel is still under construction.
Both of these plants are located on the western rivers, Jhelum and Chenab, given to Pakistan under the treaty. Pakistan has, however, raised objections over the design of these projects.
What happens in case of disagreement?
Under the treaty, "questions" are to be handled by the Permanent Indus Commission. This commission facilitates cooperation and information exchange between the two countries and has a commissioner from each country.
The treaty further says that the "differences" are to be resolved by a neutral expert. Finally, the "disputes" are referred to an ad hoc arbitral tribunal called the "Court of Arbitration".
Dispute resolution in the current case
In 2016, Pakistan asked the World Bank to facilitate the setting up of an ad hoc Court of Arbitration to look into its concerns about the designs of the two hydroelectric power projects.
On the other hand, India asked for a neutral expert's appointment for the same purpose.
These requests came after the Permanent Indus Commission engaged in discussions on the matter for a while.
According to the World Bank, the treaty does not specify which method should take precedence. But it has initiated both the processes of insistence on Pakistan.