• India has served a formal notice to Pakistan seeking a review of the Indus Waters Treaty.

• The notice was issued to Pakistan on August 30 under Article XII(3) of the Indus Waters Treaty (IWT).

• India and Pakistan signed the IWT on September 19, 1960 after nine years of negotiations with a sole aim to manage cross-border rivers.

• India’s notification highlights fundamental and unforeseen changes in circumstances that require a reassessment of obligations under various articles of the treaty.

• Among various concerns, the important ones include change in population demographics, environmental issues and the need to accelerate development of clean energy to meet India’s emission targets.

• India also cited the impact of persistent cross border terrorism as one of the reasons for demanding the review.

• It was the second time in over one-and-half years that India issued a notice to Pakistan seeking modification of the IWT.

• In January 2023, India issued the first notice to Pakistan seeking a review and modification of the treaty following Islamabad’s “intransigence” in handling certain disputes.

• With the new notice, India has called on Pakistan to begin government-to-government negotiations to review the treaty under the provisions of Article XII (3).

Dispute over two hydroelectric power plants

• The disagreement between India and Pakistan concerns the design features of the Kishanganga (330 MW) and Ratle (850 MW) hydroelectric power plants.

• The two countries disagree over whether the technical design features of these two hydroelectric plants contravene the Treaty. 

• The plants are located in India on tributaries of the Jhelum and the Chenab Rivers. The Treaty designates these two rivers, as well as the Indus, as the “Western Rivers” to which Pakistan has unrestricted use with some exceptions. Under the Treaty, India is permitted to construct hydroelectric power facilities on these rivers.

• 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 Court of Arbitration.

• 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 Court of Arbitration.

• In July 2023, Court of Arbitration ruled that it has the competence to consider matters concerning the Kishenganga and Ratle hydroelectric projects.

• While India refused to take part in the Court of Arbitration, it submitted a Memorial to the Neutral Expert in August 2023.

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