India seeks to review and Modify the Indus Water Treaty with Pakistan

The government of India sent a notice to the Pakistan government on 30 August 2024, seeking to review and modify the Indus Water Treaty of 1960 signed between India and Pakistan due to “fundamental and unforeseen” changes. In 2023, the government of India also sent a notice to Pakistan's government seeking modification in the Indus Water Treaty. The current notice seeks to review the Indus Water treaty, and India wants to re-negotiate the treaty again.

About the Indus Water Treaty 

The Indus Water Treaty, mediated by the World Bank, was signed by Prime Minister Jawahar Lal Nehru and  Pakistan’s President Mohammed Ayub Khan on 19 September 2024 in Karachi, Pakistan. 

• Under the treaty, the waters of the Indus River and its five tributaries—Beas, Sutlej, Ravi, Jhelum, and Chenab—were to be divided between India and Pakistan.
• As per the Treaty, India has the right to develop the Sutlej, Beas, and Ravi rivers, while Pakistan has the right to develop the Indus, Jhelum, and Chenab rivers.
• Thus, the treaty allotted 70 per cent of the water carried by the Indus and its tributaries to Pakistan, while 30 percent was allotted to India.
• As per the treaty's provisions, India can develop the rivers allotted to Pakistan, but the flow of the river’s water to Pakistan shall not be curtailed. 

Dispute on the Water 

Two hydroelectric projects being constructed by India in Jammu and Kashmir are under dispute between India and Pakistan.

• India is constructing the 330 MW Kishanganga hydroelectric project on the Kishanganga River, a tributary of Jhelum in the Bandipora district, and the 850 MW Ratle Hydroelectric Project on the Chenab River in the Kishtwar district.
• Both are run-off-river projects, which means that no dams are built to store the water, and the natural flow of the water on the mountain slope is used to generate electricity.
• Pakistan is objecting to these river projects as it feels that India is violating the provision of the Indus Water Treaty.

Dispute Resolution Mechanism under the Indus Water Treaty 

• Under the Indus Water Treaty, there is a three-tier dispute resolution mechanism. 
• The first stage is the Indus Water Commissioners meeting between the two countries. If both countries fail to agree, they approach the World Bank, which appoints a Neutral Expert. 
• In the third and final stage, the matter is referred to the Permanent Court of Arbitration, which is based in the Hague, Netherlands.

In 2015, Pakistan approached the World Bank to appoint a Neutral Expert on the dispute but later withdrew its petition and opted for a Permanent Court of Arbitration. India opposed this and instead asked for a Neutral Expert.

In 2022, the World Bank decided to initiate the Neutral Expert and Court of Arbitration processes. 

India opposed referring the matter to the Permanent Court of Arbitration because this was against the procedure of the Indus Water Treaty, and it has refused to participate in its proceedings. 

Why is India seeking a change in the Treaty?

India has sent a notice to Pakistan under Article XII(3) of the Indus Water Treaty, which provides for the modification of the treaty from time to time as agreed by both sides.

According to India, there have been fundamental and unforeseen changes in circumstances compared to 1960. 

According to the Indian government, there has been a significant change in the area's population demographics, environmental issues due to climate change, and the need for India to accelerate the development of clean energy to meet its carbon emission targets. India has also mentioned the impact on bilateral relations due to Pakistan-supported terrorism in India and Pakistan’s intransigence in solving water disputes as an important factor.