Call for Modification of the Indus Waters Treaty (IWT)

Syllabus: International Relations: India’s Neighbourhood

Source: IE

Context: India issued a notice to Pakistan on August 30, 2024, seeking modification of the Indus Waters Treaty (IWT), citing “fundamental changes” in circumstances. The notice comes after Pakistan’s continued objections to India’s hydroelectric projects on the Kishanganga and Chenab rivers.

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).

Indus Water Treaty

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.

India’s arguments for seeking changes in the Indus Waters Treaty (IWT) include:

1. Pakistan’s Obstruction: Pakistan’s repeated objections to India’s hydroelectric projects, particularly on the Kishanganga and Chenab rivers, have stalled development and created ongoing disputes.
2. Failure to Use Dispute Mechanisms Properly: Pakistan’s unilateral request for a Court of Arbitration, bypassing the treaty’s graded dispute resolution mechanism (Neutral Expert), violates the established process.
3. Outdated Provisions: The treaty, signed in 1960, does not fully account for current geopolitical, environmental, and technological realities, necessitating updates to reflect modern challenges. India claims that “fundamental and unforeseen” changes in circumstances since the treaty’s signing warrant a reassessment of the pact.
4. Contradictory Legal Outcomes: India argues that running both the Neutral Expert and Court of Arbitration processes in parallel could result in contradictory rulings, leading to legal confusion not addressed in the treaty.
5. Security Concerns: In light of terrorist attacks, such as the 2016 Uri attack, India has expressed that “blood and water cannot flow together,” raising security concerns about continued compliance with the treaty.

Other 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

1. 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.
2. Climate change factor: The treaty did not consider climate change, global warming, environmental impact assessments and such issues.
3. Ineffectiveness of the Permanent Indus Commission
4. 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)

Prelims Link: