Indus Water Treaty and Related Issues

Syllabus: International Relations: India’s Neighbourhood

Source: TH

Context: A Pakistani delegation arrived in Jammu’s Kishtwar district to inspect hydroelectric power projects (Kishanganga HEP on the Jhelum River basin and Ratle HEP on the Chenab River) under the Indus Water Treaty, amidst ongoing disputes over technical objections raised by Pakistan regarding certain projects.

• This visit marks the first inspection since the revocation of Jammu & Kashmir’s special status in 2019.

What is the Indus Water Treaty?

The Indus Waters Treaty (IWT) is a water-sharing agreement signed in 1960 between India and Pakistan, mediated by the World Bank. It allocates the waters of the Indus River system between the two countries. Under the treaty:

• Pakistan receives the waters of the Western Rivers (Indus, Jhelum, Chenab)
• India receives water from the Eastern Rivers (Ravi, Beas, Sutlej).

Also, India can use the Western Rivers for limited purposes like hydroelectric power generation, with certain restrictions and a dispute resolution mechanism managed by a Permanent Indus Commission and involving Neutral Experts and a Court of Arbitration if necessary.

Dispute Resolution Mechanism: The treaty provides a structured mechanism for resolving disputes related to water-sharing:

Step 1: The Permanent Indus Commission (PIC) is mandated to meet at least once a year to discuss and resolve issues arising from the implementation of the treaty.

Step 2: If disputes remain unresolved after PIC discussions, a Neutral Expert is appointed to adjudicate on technical matters concerning the interpretation or application of the treaty’s provisions.

Step 3: If disputes persist beyond the Neutral Expert’s determination, the matter can be referred to a Court of Arbitration, consisting of a seven-member arbitral tribunal. This tribunal is tasked with providing a binding decision on the dispute.

Current Issue:

India and Pakistan have disagreements over the design features and operation of certain hydroelectric projects, notably the Kishenganga and Ratle Hydroelectric Projects (HEPs), which are constructed on the Jhelum and Chenab rivers respectively.

Issues faced by the IWT:  

1. Challenges for setting up new power projects: The continuing dispute creates  challenges for  the setting  up of  new  power projects
2. Limits water usage: The IWT permits Jammu and Kashmir to use the waters of the rivers in a limited manner, thus affecting water availability for agricultural purposes.
3. Lack of collaboration and mutual trust between countries
4. No regular data sharing as planned in the treaty.
5. Limited to a conflict-resolution mechanism instead of strengthening the interaction, trust and cooperation

6. Dispute resolution: The most crucial reason to alter the treaty is to clarify Article IX of the treaty’s dispute resolution system.
   1. Though India is rightful of using the western rivers for non-consumptive purposes, each time India plans a hydroelectric project, Pakistan challenges it by calling for international arbitration. E.g., the hydroelectric power plants, Kishanganga and Ratle.
7. Climate change factor: The treaty did not consider climate change, global warming, environmental impact assessments and such issues.
8. Ineffectiveness of the Permanent Indus Commission
9. Does not cover groundwater: The Treaty is no longer fit for its purpose as it only covers surface water but not groundwater.
   1. Groundwater depletion may increase by up to 75% in 2050, putting further pressure on the upstream portions of the Indus River.

Way Forward:

1. Negotiation and Dialogue: Use established mechanisms like the Permanent Indus Commission (PIC) to address and resolve disputes through direct discussions.
2. Technical Solutions: Employ technical experts to resolve disputes over the design, construction, and operation of water infrastructure, as seen in the Baglihar Dam case.
3. Mediation: Seek third-party mediation if negotiations fail, with potential assistance from the World Bank or other international organizations.
4. Legal Recourse: Utilize the treaty’s arbitration panel for unresolved disputes after failed negotiations or mediation.
5. Long-term Solutions: Address larger political issues through sustained dialogue and cooperation for lasting resolution.

Conclusion

As a document, the treaty may have certain weaknesses, but the larger problem is the fraught relationship between India and Pakistan. Experts are calling for the renegotiation of the treaty. There is a need for both countries should revive the treaty in such a way that the resources are equitably shared between both countries.

Mains Link:

Present an account of the Indus Water Treaty and examine its ecological, economic and political implications in the context of changing bilateral relations. (UPSC 2016)