The Indus Waters Treaty is a significant water-sharing agreement between India and Pakistan, brokered by the World Bank and officially signed on September 19, 1960. This treaty oversees the distribution and utilization of waters from the Indus River system, which consists of six rivers: Indus, Jhelum, Chenab, Ravi, Beas, and Sutlej. Its primary goal is fostering cooperation and peaceful management of transboundary water resources between these two neighboring countries.
Distribution of Rivers and Key Provisions of the Treaty
According to the treaty’s terms, India has unrestricted use of the waters from three eastern rivers (Ravi, Beas, and Sutlej), whereas Pakistan has unrestricted use of the waters from the three western rivers (Indus, Jhelum, and Chenab). However, India still retains limited-use rights for domestic, non-consumptive, and agricultural purposes of the three western rivers.
Furthermore, the treaty permits India to construct run-of-the-river hydroelectric projects on these western rivers, subject to certain conditions. As far as dispute resolution is concerned, the treaty outlines several steps that can be taken through the Permanent Indus Commission, the appointment of a neutral expert, and the Court of Arbitration.
The Dispute Over Hydroelectric Projects
This dispute primarily involves disagreements over India’s construction of the Kishenganga and Ratle hydroelectric projects in the region of Jammu and Kashmir. The two nations hold differing views on whether the technical design features of these two projects violate the Indus Waters Treaty.
Pakistan’s objections to these projects mainly revolve around perceived violations of the treaty, concerns about reduced water flow, potential environmental impact, and differing treaty interpretations. Because of these objections, the World Bank had to pause the dispute resolution process, and it sought to fulfill its procedural obligations with respect to both the Court of Arbitration and the appointment of a neutral expert.
India’s Stand on the Dispute
India has consistently opposed the constitution of the Court of Arbitration in this case because it believes this goes against the Indus Waters Treaty’s provisions. It also questions the jurisdiction and competence of the court, asserting that it wasn’t correctly constituted according to the treaty.
In addition, India has reiterated its preference for a single dispute resolution process, and it has refrained from appointing arbitrators or attending the court’s proceedings.
Ruling of the Permanent Court of Arbitration
The Hague-based Permanent Court of Arbitration (PCA) recently ruled that it has the authority to hear Pakistan’s objections to these hydroelectric projects. This decision was unanimous, binding on both parties, and leaves no room for appeal.
It essentially rejected India’s complaints concerning the competence of the Court of Arbitration and will likely complicate the ongoing dispute over these hydroelectric projects. This ruling could very well impact the effectiveness of the Indus Waters Treaty and influence future bilateral relations regarding water-sharing and cooperation between India and Pakistan.
Understanding the Role of the Permanent Court of Arbitration
Established in 1899, the Permanent Court of Arbitration’s core purpose is to serve the international community in the area of dispute resolution. It facilitates arbitration and other forms of dispute settlement between states.
Its structure consists of three parts: the Administrative Council, which oversees its policies and budgets; the Members of the Court, a panel of independent possible arbitrators; and the International Bureau, its Secretariat, led by the Secretary-General. The court also maintains a Financial Assistance Fund to help developing countries meet some of the costs involved in international arbitration or other forms of dispute resolution.
