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Indus Waters Treaty: When Cooperation Came at a Cost

29 Apr 2025
2 min

Indus Waters Treaty (IWT) Disputes

The Indus Waters Treaty (IWT) is often celebrated as a successful international water-sharing agreement. However, India's experience reveals a history of disputes, delays, and operational compromises.

The First Dispute: Salal Hydroelectric Project

  • The Salal hydroelectric project was the first major project under dispute, located on the Chenab River in Reasi, Jammu and Kashmir.
  • In 1968, India submitted the project design to the Permanent Indus Commission (PIC) for Pakistan’s review.
  • By 1978, India agreed to significant design modifications.
  • Completed in 1987, the project soon faced sedimentation issues, impairing its capacity to 57%.

Kishanganga and Ratle: Ongoing Disputes

  • The Kishanganga project, a 330 MW initiative launched in 2006, was the first to face arbitration at the Court of Arbitration (CoA).
  • Pakistan challenged India's water diversion from the Kishanganga (Neelum) River, leading to a CoA intervention in 2010.
  • The 2013 CoA ruling allowed the diversion but required minimum downstream flow to Pakistan.
  • Discontented, Pakistan sought further arbitration on the project's design in 2016.
  • Pakistan also objected to the 850 MW Ratle project in 2012, initiating World Bank proceedings in 2022.
  • India opposed this dual-track approach and issued notices to Pakistan in 2023 and 2024 seeking treaty modification.

Baglihar: World Bank Intervention

  • The Baglihar hydroelectric project (900 MW) on the Chenab faced objections from Pakistan in 1992, especially regarding gated spillways and storage capacities.
  • After awarding a construction contract in 1999, tensions escalated, leading to World Bank involvement in 2005.
  • A Neutral Expert, upheld India's design, including the contentious gated spillways, in 2007, resolving the dispute by 2010.

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