Why in the News?

Recently, the World Bank appointed Neutral Expert on Indus Water Treaty (IWT) has backed India's position on its competence to decide the outcome of a dispute over two hydroelectric projects in India's Jammu and Kashmir.

More on the News

• Complaint was initiated by Pakistan in 2015, leading to dual-track dispute resolution by the World Bank invoking both a Neutral Expert (On India's request) and the Permanent Court of Arbitration (On Pakistan's request).
• Disputed Hydroelectric Projects include 330 MW Kishenganga Project, inaugurated in 2018 and 850 MW Ratle Project, under construction, on the Jhelum and Chenab rivers, respectively. 
  • Even though these are run-of-river projects, Pakistan has objected to their construction, citing potential impacts on water flow to its agricultural lands. 

About IWT

• Genesis: Signed in 1960 between India and Pakistan mediated by the World Bank.
• Water usage rights:
  • Eastern Rivers (Ravi, Beas, and Sutlej) for India's unrestricted use.
  • Western Rivers (Indus, Jhelum, and Chenab) are allocated to Pakistan, with India allowed for specific non-consumptive uses like navigation, floating of timber or other property, flood protection or flood control, fishing or fish culture.
    • India is, however, permitted to use waters of these rivers for following purposes:
      • Domestic use;
      • Non-consumptive use;
      • Agriculture use;
      • Generation of hydro-electric power.
    • This gives India roughly 30% and Pakistan 70% of the water carried by the Indus River System. 
• Implementation: Requires both countries to create permanent Commissioners for Indus Waters to serve as the regular channel of communication on all matters relating to the implementation of the Treaty.
• Dispute Resolution Mechanism (Three Level Graded Mechanism) 
  • Permanent Indus Commission (PIC): For questions concerning the interpretation or application of this Treaty or the existence of any fact which might constitute a breach of this Treaty.
  • Neutral Expert: For technical disputes where the PIC cannot reach a consensus.
    • Neutral Expert shall be appointed by the World Bank or jointly by the Government of India and the Government of Pakistan.
  • Court of Arbitration: 7-member arbitral tribunal for legal adjudication of disputes if unresolved at lower levels.

Challenges to IWT

• Pakistan's opposition to Indian projects: Pakistan frequently opposes Indian projects such as Kishanganga Hydroelectric Project on the Jhelum River and Ratle Hydroelectric Project on the Chenab River, primarily questioning their compliance with the technological criteria set by the treaty.
• Environmental Concerns: Rapid melting of Himalayan glaciers due to climate change poses a challenge in terms of alteration in the river flow in the Indus system.
• India's Growing Needs: With a burgeoning population and expanding agricultural sector, India seeks to reevaluate its water rights to meet current demands for irrigation and electricity needs.
• Security and Political Pressure: 
  • Strategic Use: Water has been seen as a strategic asset, with statements like "blood and water cannot flow together" by Indian leaders indicating water's role in geopolitics.
  • Terrorism Concerns: India has linked water issues with cross-border terrorism from Pakistan, suggesting that treaty compliance should reflect security considerations, especially after incidents like the Uri attack in 2016.

Way Forward

• Integrated water management and climate adaptation: Both nations can adopt integrated river basin management approaches and initiate joint climate impact studies, focusing on sustainable water use, conservation, and flood management.
• Modernization and renegotiations: To take into account technological advances and changes in water-demand scenario.
  • It can also take into account principles of international water law including Equitable and Reasonable Utilization (ERU) and No Harm Rule (NHR).
    • The No-Harm Rule is a widely recognised principle of customary international law whereby a State is duty-bound to prevent, reduce and control the risk of environmental harm to other states.
• Transparency and data sharing: Real-time satellite-based monitoring and a joint data-sharing mechanism can help address the trust deficit regarding water flow data, dam operations, and flood management.