Sailent features of Indus Water Treaty

Key Points

– The Indus Water Treaty (IWT) divides river waters between India and Pakistan, with Eastern Rivers (Ravi, Beas, Sutlej) for India and Western Rivers (Indus, Jhelum, Chenab) for Pakistan, though India has limited use rights on Western Rivers.
– It establishes the Permanent Indus Commission for cooperation and data sharing, which seems crucial for managing water resources.
– A three-tier dispute resolution system handles issues, involving the Commission, Neutral Experts, and Courts of Arbitration, though recent tensions suggest ongoing challenges.
– The treaty, signed in 1960, has endured conflicts, but India’s recent suspension in April 2025 highlights potential instability.

Overview

The Indus Water Treaty, signed on September 19, 1960, is a water-sharing agreement between India and Pakistan, brokered by the World Bank. It aims to manage the Indus River system, vital for both nations’ agriculture and power needs. The treaty divides the rivers into Eastern and Western, with specific rights and restrictions, and includes mechanisms for cooperation and dispute resolution.

River Allocation

The treaty allocates:
– *Eastern Rivers (Ravi, Beas, Sutlej)* to India for unrestricted use.
– *Western Rivers (Indus, Jhelum, Chenab)* to Pakistan, with India allowed limited uses like domestic needs, non-consumptive uses (e.g., navigation), and restricted irrigation (up to 700,000 acres). India can also build run-of-the-river hydroelectric projects, subject to design criteria.

India controls about 30% of the total water flow, while Pakistan controls 70%, reflecting the treaty’s balance.

Cooperation and Dispute Resolution

The Permanent Indus Commission, with one commissioner from each country, meets annually to ensure compliance, exchange data, and resolve routine issues. For disputes, it offers a three-tier system:
– Questions are handled by the Commission.
– Differences go to a Neutral Expert for technical resolution.
– Disputes escalate to a Court of Arbitration, with the World Bank facilitating appointments.

Recent Developments

On April 23, 2025, India announced the suspension of the treaty following a terror attack in Pahalgam, Kashmir, marking a significant shift. This move, amid ongoing disputes over hydroelectric projects like Kishanganga and Ratle, suggests potential future challenges.

Survey Note: Detailed Analysis of the Indus Water Treaty’s Salient Features

The Indus Water Treaty (IWT), signed on September 19, 1960, between India and Pakistan with facilitation from the World Bank, is a pivotal water-sharing agreement governing the use of the Indus River system. This section provides a comprehensive examination of its salient features, drawing from multiple authoritative sources to ensure a thorough understanding. The treaty’s resilience through decades of geopolitical tensions, including wars in 1965, 1971, and 1999, underscores its significance, though recent developments, such as India’s suspension on April 23, 2025, following the Pahalgam attack, introduce new complexities.

Historical Context and Signing

Negotiated over nine years, the treaty was signed by then Indian Prime Minister Jawaharlal Nehru and Pakistani President Ayub Khan in Karachi. The World Bank’s role, initiated by former President Eugene Black, was instrumental, making it a signatory to the agreement. This historical backdrop highlights the treaty’s foundation in international mediation, aiming for equitable water distribution amidst post-partition tensions.

River Classification and Allocation

A core feature is the division of the Indus River system into:
– *Eastern Rivers*: Ravi, Beas, and Sutlej, allocated to India for unrestricted use, with a total mean annual flow of 41 billion cubic meters.
– *Western Rivers*: Indus, Jhelum, and Chenab, allocated to Pakistan, with a total mean annual flow of 99 billion cubic meters.

India received control over 30% of the total water, while Pakistan received 70%, reflecting the treaty’s attempt to balance upstream and downstream needs. However, India retains limited rights on Western Rivers, including:
– Domestic use.
– Non-consumptive uses, such as navigation, floating of property, and fish culture.
– Agricultural use, limited to 700,000 acres, as detailed in Annexure C.
– Hydroelectric power generation, governed by Annexure D, which specifies run-of-the-river projects with minimal storage and specific design criteria (e.g., crest not exceeding 20 feet above mean bed for small plants).

This allocation is critical, given the rivers’ importance for irrigation, especially in Pakistan’s Punjab region, and India’s hydropower needs in Jammu and Kashmir.

Permanent Indus Commission

The treaty establishes the Permanent Indus Commission (PIC), comprising one commissioner from each country, to implement and monitor the agreement. The commission meets annually, alternating between India and Pakistan, typically in November, and submits an annual report by June 1. Its role includes:
– Exchanging hydrological data, such as gauge, discharge, extraction, and escapage data, monthly within three months, with daily supply available on request (Article VI).
– Resolving routine issues and facilitating cooperation, which is vital for maintaining treaty compliance.

This mechanism has been effective, with regular meetings ensuring data transparency, though recent tensions have strained its operations.

Dispute Resolution Mechanism

The treaty’s three-tier dispute resolution system is a standout feature, designed to handle various levels of conflict:
– *Questions*: Addressed by the PIC, covering operational and technical issues.
– *Differences*: Referred to a Neutral Expert, appointed by the World Bank, for technical resolution. Decisions are binding, as seen in the Baglihar case (2007), which took 1.5 years, and the Kishanganga case (2013), resolved in three years.
– *Disputes*: Escalated to a Court of Arbitration, comprising seven members (two from each side, three neutral umpires), with majority voting and the chairman holding a casting vote. The World Bank’s role is limited to designating individuals for these processes, reimbursing expenses from trust funds established by both nations.

Recent disagreements, such as over the Kishanganga (330 MW, inaugurated 2018) and Ratle (850 MW, under construction) projects, illustrate the system’s use. Pakistan requested a Court of Arbitration in 2016, while India sought a Neutral Expert, leading to a pause by the World Bank in December 2016, resumed in March 2022, with appointments made in October 2022 (Michel Lino as Neutral Expert, Sean Murphy as Court Chairman).

Financial and Operational Provisions

Financial aspects include India’s contribution of £62,060,000 (approximately $170 million at the time) towards replacing water supplies lost by Pakistan, paid in 10 annual installments starting November 1, 1960. A transition period from April 1, 1960, to March 31, 1970, with a possible extension to March 31, 1973, allowed Pakistan to develop alternative supplies, detailed in Annexure H.

Specific limits on agricultural use are outlined, such as Pakistan’s rights on Basantar Tributary (100 acres annually) and India’s withdrawals via canals like Ranbir and Pratap, with seasonal flow limits (e.g., 1,000 cusecs April 15-October 14 for Chenab Main via Ranbir Canal). Storage works on Western Rivers are restricted, with aggregate capacities like 0.25 MAF for general storage on Indus and 0.6 MAF on Chenab for power (Annexure E).

Endurance and Significance

The treaty’s endurance through multiple conflicts is notable, surviving wars and diplomatic strains. It is considered one of the most successful water-sharing agreements globally, as evidenced by its 60th anniversary in 2020 and its mention in various analyses ([Indus Waters Treaty Wikipedia](https://en.wikipedia.org/wiki/Indus_Waters_Treaty)). However, recent events, such as India’s suspension on April 23, 2025, following the Pahalgam attack, have introduced uncertainty. This suspension, announced by Foreign Secretary Vikram Misri, marks the first time tensions have disrupted the treaty, potentially affecting Pakistan’s water supply for agriculture and urban areas.

Current Challenges and Controversies

Ongoing disputes, particularly over hydroelectric projects, highlight tensions. Pakistan fears reduced water flow from India’s dams, while India asserts compliance with treaty terms. The recent suspension, linked to broader Indo-Pak relations, including terrorism accusations, adds complexity. Climate change, reducing river flows, and population growth further strain the treaty, with calls in India for review or abrogation during tensions, though no formal action has been taken as of April 27, 2025.

Comparative Analysis

The treaty’s structure, with clear river allocation and dispute mechanisms, contrasts with other water-sharing agreements, such as those on the Nile or Colorado, due to its detailed annexures and World Bank involvement. The PIC’s role is akin to joint commissions in other treaties, but its resilience through conflict is unique.

Table: Key Provisions and Details
FeatureDetails
River AllocationEastern Rivers (India): Ravi, Beas, Sutlej; Western Rivers (Pakistan): Indus, Jhelum, Chenab
India’s Limited UseDomestic, non-consumptive, agriculture (700,000 acres), hydroelectric (run-of-river)
Permanent Indus CommissionMeets annually, exchanges data, resolves routine issues
Dispute ResolutionQuestions (Commission), Differences (Neutral Expert), Disputes (Court of Arbitration)
Financial ContributionIndia pays £62,060,000 in 10 installments starting Nov 1, 1960
Transition PeriodApril 1, 1960, to March 31, 1970, extendable to March 31, 1973
Conclusion

The Indus Water Treaty’s salient features—river allocation, cooperative mechanisms, and dispute resolution—form a robust framework for managing shared water resources. However, recent developments, including the 2025 suspension, suggest evolving challenges that may require diplomatic efforts to maintain its effectiveness.

Key Citations

VISHAL V. KALE
ARBITRATION COUNSEL