On August 30, 2024, India formally issued a notice to Pakistan seeking a review and modification of the Indus Water Treaty (IWT), citing concerns over shifting population demographics, agricultural demands, and the urgent need to accelerate clean energy development. The IWT, signed in 1960, governs water sharing from the Indus River system between the two nations. The treaty allocates 19.48 percent of the river waters to India and 80.52 percent to Pakistan, with India holding exclusive rights over the eastern rivers—Sutlej, Beas, and Ravi—and Pakistan receiving the majority share from the western rivers—Indus, Jhelum, and Chenab. Despite the treaty’s historical significance as a cooperative agreement, India argues that it disproportionately benefits Pakistan, complicates project approvals, and inadequately addresses modern challenges like climate change. With increasing legal, environmental, and geopolitical concerns between India and Pakistan, revisiting the IWT’s central tensions and its need for reform is integral.

Legal Disputes over Hydroelectric Projects

Since its inception, the IWT has been heralded as a successful water-sharing agreement. However, growing domestic water needs, coupled with an intensifying climate crisis, have led Indian policymakers to push for reform. Calls for modifications date back to 2005, gaining momentum in 2016 with disputes over the Kishenganga and Ratle hydroelectric projects. The Kishenganga project involves diverting water from the Kishenganga River to generate electricity before returning it to the river, which Pakistan claims affects downstream flows. Similarly, Pakistan has objected to the Ratle project over its potential impact on water availability. These disputes have resulted in significant delays, causing substantial financial losses and escalating project costs for India. Investors often hesitate to commit to such projects due to ongoing litigation, fearing risks to their investments. For instance, the Ratle project was initially awarded to GVK Industries, but the contractor eventually withdrew because of the prolonged legal uncertainties surrounding the project.

Despite the treaty’s historical significance as a cooperative agreement, India argues that it disproportionately benefits Pakistan, complicates project approvals, and inadequately addresses modern challenges like climate change.

The IWT’s Article IX outlines a three-tiered resolution mechanism for such disputes: the Indus Waters Commission, a Neutral Expert, and a Court of Arbitration. India advocates for adhering to the Neutral Expert process, citing efficiency and reduced external involvement.........

© South Asian Voices