• India has issued a notice to Pakistan for modification of the Indus Waters Treaty (IWT) of 1960.

• India and Pakistan signed the treaty in September 1960 after nine years of negotiations, with the World Bank being a signatory of the pact.

• The treaty sets out a mechanism for cooperation and information exchange between the two countries regarding use of waters of a number of rivers.

• Notably, in its report tabled in August 2021, a parliamentary standing committee recommended renegotiating the Indus Waters Treaty to address the impact of climate change on water availability in the river basin and other challenges which are not covered under the agreement. 

The Indus Waters Treaty

• India and Pakistan share the waters of six rivers — Ravi, Beas, Sutlej, Indus, Chenab and Jhelum. The basin is mainly shared by India and Pakistan with a small share for China and Afghanistan.

• The Indus Waters Treaty was signed in September 1960 after nine years of negotiations between India and Pakistan with the help of the World Bank, which is also a signatory. 

• Under the Treaty, the water from the three eastern rivers — Ravi, Sutlej and Beas — averaging around 33 million acre feet (MAF) were allocated to India for exclusive use.

• The water from western rivers — Indus, Jhelum and Chenab — averaging to around 135 MAF were allocated to Pakistan except for specified domestic, non-consumptive and agricultural use permitted to India as provided in the Treaty.

• The Treaty also sets forth distinct procedures to handle issues which may arise: “questions” are handled by the Commission, “differences” are to be resolved by a Neutral Expert, and “disputes” are to be referred to a seven-member arbitral tribunal called the “Court of Arbitration.” 

• As a signatory to the Treaty, the World Bank’s role is limited and procedural.

• The Treaty sets out a mechanism for cooperation and information exchange between the two countries regarding their use of the rivers, known as the Permanent Indus Commission (PIC), which has a commissioner from each country.

• The two commissioners are required to meet at least once every year, alternately in India and Pakistan.

• The commission enables to establish and promote cooperative arrangements for the treaty implementation, furnish or exchange of information or data provided for in the treaty, promote cooperation between the parties in the development of the waters of the Indus system.

Why India has sent notice?

• In 2015, Pakistan requested the appointment of a neutral expert to examine its technical objections to India’s Kishenganga and Ratle hydroelectric projects.

• In 2016, Pakistan unilaterally retracted this request and proposed that a Court of Arbitration adjudicate on its objections.

• Under the pact, any difference needs to be resolved under a three-stage approach. 

• In November 2016, India had pointed out the legal untenability of the World Bank launching two simultaneous processes for appointment of a neutral expert — requested by India, and establishment of a Court of Arbitration — requested by Pakistan on Kishenganga and Ratle hydroelectric projects.

• In March 2022, the World Bank announced starting the two concurrent processes and subsequently, appointed a neutral expert and a chair of the CoA. 

• India took the significant step around 10 months after the World Bank’s announcement, following Islamabad’s refusal to address the matter through talks between the two commissioners.

• When the two concurrent processes resumed in March last year, India only cooperated with the neutral expert and has been skipping the process being followed by the CoA.

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