Source: The post India lagging behind in AI innovation has been created, based on the article “Why Neutral Expert’s decision on Indus Waters Treaty is a win for India” published in “Indian Express” on 23rd January 2025
UPSC Syllabus Topic: GS Paper2- International relations-India and its neighbourhood- relations.
Context: The article discusses how the Neutral Expert appointed by the World Bank confirmed his authority to judge the disputes between India and Pakistan concerning two hydroelectric projects under the Indus Waters Treaty. This decision supports India’s position that the disputes fall within his jurisdiction.
For detailed information on Indus Water Treaty read this article here
What is the Indus Waters Treaty (IWT)?
- The Indus Waters Treaty was signed on September 19, 1960, by India and Pakistan after nine years of negotiations arranged by the World Bank.
- It determines the distribution of the waters of the Indus River and its tributaries.
- India has “unrestricted use” of the Eastern Rivers (Beas, Ravi, Sutlej), and Pakistan controls the Western Rivers (Indus, Chenab, Jhelum).
- India gets 30% of the total Indus River System water, while Pakistan gets 70%.
What is the ongoing dispute?
The dispute concerns the design of two hydroelectric projects in Jammu and Kashmir:
- Kishenganga Hydroelectric Project (HEP) on the Kishenganga (a tributary of the Jhelum).
- Ratle Hydroelectric Project (HEP) on the Chenab.
- Both are “run-of-the-river” projects, meaning they generate electricity without obstructing river flow.
- Pakistan claims these projects violate the Treaty, but India maintains they comply with IWT provisions.
How was the dispute handled?
- In 2015, Pakistan requested a Neutral Expert but withdrew its request in 2016, opting for arbitration at the Permanent Court of Arbitration (PCA).
- India rejected the PCA mechanism and insisted on resolving differences through the Neutral Expert as per the IWT’s graded dispute resolution system.
- The World Bank initiated both processes in October 2022: appointing a Neutral Expert (Michel Lino) and launching PCA proceedings.
What is the Neutral Expert’s role and decision?
- The Neutral Expert upheld India’s position that the differences on the two projects fall under his jurisdiction.
- He decided to hear the merits of the case after visiting the project sites in June 2023.
- India boycotts the PCA proceedings, calling them inconsistent with the Treaty, but engages with the Neutral Expert process.
- It confirms India’s stand that the Neutral Expert is competent to resolve the dispute.
- This outcome is favorable for India at this stage as the matter remains within Treaty-aligned mechanisms.
What is the future of the IWT?
- India has issued two notices to Pakistan:
- January 2023 Notice: Sought modification of the Treaty due to Pakistan’s repeated objections.
- September 2024 Notice: Cited changes in demographics, environmental challenges, clean energy goals, and cross-border terrorism as reasons to review the Treaty.
- These notices invoke Article XII (3), which allows the Treaty to be modified by mutual agreement.
Key Takeaway
The Neutral Expert’s decision strengthens India’s stand in the dispute. However, India’s push for Treaty review and modification suggests possible renegotiation in response to modern challenges like clean energy and security concerns.
Question for practice:
Evaluate how the decision of the Neutral Expert supports India’s position in the ongoing disputes under the Indus Waters Treaty.
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