Permanent Court of Arbitration Back India on IWT Dispute with Pakistan

The Permanent Court of Arbitration situated in The Hague, Netherlands has endorsed the Indian government's stand and has ruled that the World Bank-appointed neutral expert ‘is competent’ to decide on the design and water usage by two hydropower projects in Jammu and Kashmir under the provisions of the Indus Water Treaty (IWT) 1960.

The ruling of the Permanent Court of Arbitration came on the petition of Pakistan which approached the court against the Kishanganga and Ratle Hydroelectric Project in Kashmir. India opposed this as it insisted on the matters to be resolved through a World Bank-appointed Neutral Expert.

Background to the Case and IWT

Under the Indus Water Treaty of 1960, the waters of the Indus River and its five tributaries—Beas, Sutlej, Ravi, Jhelum, and Chenab—were divided between India and Pakistan.

India got the right to develop the Sutlej, Beas, and Ravi rivers, while Pakistan has the right to develop the Indus, Jhelum, and Chenab rivers.

India can use the rivers allotted to Pakistan but shall not obstruct the flow of the river water to Pakistan.

If there is any dispute between the two countries there is a three-stage dispute resolution mechanism.

• In the first stage both the countries try to resolve the dispute at the Indus Water Commissioners meeting and if it fails then they can approach the World Bank.
• The World Bank which brokered the Indus Water Treaty, will appoint a Neutral Expert. 
• If either of the countries disagrees with Neutral Experts' ruling then they can approach the Permanent Court of Arbitration.

Pakistan's Objection to the Kishanaganga and Ratle Project 

• India is constructing the 330 MW Kishanganga hydroelectric project on the Kishanganga River, a tributary of Jhelum in the Bandipora district, and the 850 MW Ratle Hydroelectric Project on the Chenab River in the Kishtwar district.
• Both are run-off-river projects, which means that no dams are built to store the water.
• Pakistan is objecting to these river projects as it feels that India is violating the provision of the Indus Water Treaty and these projects will adversely affect the flow of river water to Pakistan.

About the Permanent Court of Arbitration 

The Permanent Court of Arbitration was established in 1899 during the first Hague Peace  Conference held in 1899.

The Permanent Court of Arbitration was established by the Convention for the Pacific Settlement of International Disputes which was agreed upon during the first Hague Peace Conference. 

The Permanent Court of Arbitration is an intergovernmental body that provides various dispute resolution services to the states, state entities, international organizations and private parties.

Headquarters: The Hague, Netherlands.

For Details read: India Seeks to Review and Modify the Indus Water Treaty with Pakistan