The Neutral Expert has recently ruled in favor of India on the Indus Waters Treaty. This judgment is a significant development for India, supporting its interpretation of the treaty. It marks a crucial win for New Delhi in its ongoing disputes with Pakistan over hydroelectric projects.

Implications of the Neutral Expert’s Decision

The Neutral Expert’s decision to deem himself competent to adjudicate the differences between India and Pakistan regarding the design of the Kishenganga and Ratle hydroelectric projects confirms India’s long-held position. This effectively upholds India's rights under the IWT. It prevents premature escalation to the Permanent Court of Arbitration (PCA). This judgment reiterates that the proper methods and procedures as envisioned for the resolution of international disputes should be complied with. In this respect, the judgment shall provide precedent for future disagreements to be managed in an orderly process.

About the Indus Waters Treaty

The Indus Waters Treaty was signed between the two nations, India and Pakistan on 19 September 1960. The World Bank was used as the facilitator of the process of mediation. Mediation was important because waters that flowed through the river Indus belonged to both the Indian and Pakistani nations. It played a very important part in their agrarian and industrial sectors. Indeed, the effort of IWT could be considered vital for cooperation efforts and equitable appropriation of water flow between the country.

Background of Establishment of the IWT

India and Pakistan achieved independence status in 1947. Two years later, both nations confronted severe management challenges based on the shared Indus River basin. Apart from supporting hydroelectric power schemes, the river serves irrigation needs. It also provides direct water supply for consumption purposes in both nations. Diversion issues arise rather soon thereafter with conflicts on possible divergence looming. Considering the seriousness of the issue, the World Bank brokered the meeting between the two countries. After nine years of discussion, IWT was signed. It paved the way for the peaceful and equal division and control of waters.

Read the editorial on the Indus Water Treaty Renegotiation!

Key Provisions of the Indus Water Treaty

There are some principles that govern how the water runs in the river Indus because of IWT as follows:

• Water Distribution: It divided the waters of three eastern rivers, that is, Beas, Ravi, and Sutlej, for India and three western rivers-Indus, Chenab, and Jhelum-for Pakistan. This enables both of them to receive water in adequate proportions for their necessities.
• Non-Consumptive Use: India may make consumptive as well as non-consumptive uses of the western rivers. This includes hydel power, navigation and fisheries. This is subject to such use not interfering with the natural flow of the rivers and causing incidental flow variation.
• Infrastructure Development: The treaty enables India to construct storage structures, hydroelectric schemes, and other infrastructure on the western rivers. This is subject to conditions designed to safeguard Pakistan's interests. Such schemes shall be designed in detail so that they do not affect the water supply to Pakistan adversely.
• Regular Communication: The treaty stipulates, through the Permanent Indus Commission, a framework upon which the two countries set regular communication paths. The permanent commission comprises each country's representatives. They, in scheduled and regular sessions, address all matters relating to the treaty such that its implementation will not become chaotic.

Read the article on the Arbitration and Conciliation Act!

Dispute Resolution Mechanisms in the IWT

In case of disagreement between India and Pakistan about the interpretation or implementation of the IWT, there exists a comprehensive mechanism for its resolution between the two nations. The mechanism is three-tiered:

• Indus Commissioners: The first level involves the Indus Commissions of the two countries. They ensure that the treaty is implemented. They find an amicable solution to any problem through bilateral talks.
• Neutral Expert: In the event that Indus Commissioners could not settle a question, it would then be referred to a Neutral Expert appointed by the World Bank. A Neutral Expert makes an examination into technical questions which forms the basis for the dispute. He gives his award under terms of the relevant provision of the treaty of the case at bar.
• Permanent Court of Arbitration (PCA): In case one party is not satisfied with the decision of the Neutral Expert, then that can be brought before the PCA. PCA is an international arbitration body that provides a platform for settling disputes between nations.

Read the article on the Alternative Dispute Resolution!

Projects to be Inspected Under the Indus Waters Treaty

Kishenganga and Ratle hydroelectric projects, of which the current row has resulted, are run-of-the-river schemes located in Jammu and Kashmir state. These projects are designed to generate electricity. This should be done without significantly altering the natural flow of the river. Still, Pakistan had lodged some objections against design features of some of these plants that violate IWT. This Neutral Expert's decision thus confirms that those issues fall within his mandate. It enables him to review the technical objections and produce a decision.

Read the article on the International Court of Justice!

Way Forward

Several key steps toward this are laid down so that the successful working of IWT may not only be sustained but that future disputes must also be dealt with.

• Adherence to Established Mechanisms: Both countries, India and Pakistan, will follow the procedure as specified for resolution of all differences by means of mechanisms incorporated in IWT.
• Regular Contact: The two countries must have regular contact by Indus Commissioners. This enables the problems faced to be settled right away while having open lines of communication.
• Modernization of the Treaty: Ever since the IWT was concluded, the dynamic factors, such as demographic changes, environmental conditions, and technological advances, have significantly influenced its inception. Therefore, it may be necessary to revise and update the treaty. Both countries should seek mutually agreed modifications to counter contemporary challenges and usher in greater long-term sustainability.
• Environmental Issues: Climatic change is affecting water resources all over the world. Hence, India and Pakistan should collaborate over environmental protection and sustainable water management practices in order to maintain the Indus River system.