 "India welcomes Neutral Expert ruling on hydro projects under Indus treaty")
India has welcomed a key decision by the World Bank-appointed 'Neutral Expert' under the Indus Waters Treaty, 1960, regarding its Kishenganga and Ratle hydroelectric projects. The Neutral Expert confirmed his authority to address seven technical questions raised about these projects, a decision that aligns with India’s long-standing position.
What is the Indus Waters Treaty?
The Indus Waters Treaty is a water-sharing agreement signed in 1960 between India and Pakistan, with the World Bank as a guarantor. It governs the use of rivers in the Indus basin and outlines mechanisms to resolve disputes. If disagreements arise, they can be referred to a Neutral Expert or a Court of Arbitration, depending on the type of issue.
The current issue
India’s Kishenganga and Ratle hydroelectric projects have been questioned by Pakistan, which claims they may not comply with the Treaty. India maintains that these projects follow all Treaty rules.
Pakistan’s initial request to the World Bank in 2016, concerning its objections to the design features of the two hydroelectric power projects, sought a settlement through a Neutral Expert. However, Pakistan later withdrew this request and sought adjudication through a Court of Arbitration. India, on the other hand, insisted that the issue should be resolved solely through ‘Neutral Expert’ proceedings.
Seven technical questions about the projects were referred to the Neutral Expert, the authority designated by the Treaty to handle such matters.
On January 20, 2025, the Neutral Expert ruled that these questions fall under his jurisdiction. This means he can now examine the details of the case and give a final decision.
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India’s reaction
India welcomed the decision, saying it proves that the Neutral Expert is the right authority for resolving such differences. India also reaffirmed its commitment to the Treaty and stated that it will fully participate in the Neutral Expert’s process to ensure the matter is resolved fairly.
India pointed out that the Treaty does not allow for parallel processes. For this reason, India does not recognise or participate in a separate Court of Arbitration initiated by Pakistan, which India considers invalid.
What happens next?
Now that the Neutral Expert has confirmed his role, he will move on to the next phase: reviewing the technical questions in detail and providing a final decision.
Meanwhile, India and Pakistan remain in discussions under Article XII (3) of the Treaty about reviewing and possibly modifying its terms.