India Rejects Permanent Court of Arbitration (CoA) Ruling on Indus Waters Treaty 

Syllabus: GS2/ International Relation

In Context

• India has rejected the latest ruling of the Court of Arbitration (CoA), a five-member arbitral panel set up in 2023 at Pakistan’s request to settle a dispute over the design of India’s Kishenganga and Ratle hydroelectric projects in Jammu & Kashmir.
  • India has kept the 1960 Indus Waters Treaty in abeyance as part of India’s punitive measures against Pakistan a day after the Pahalgam terror attack.

What Is the Indus Waters Treaty (IWT)?

• The Indus Waters Treaty was signed on September 19, 1960, after nine years of negotiations between India and Pakistan, brokered by the World Bank, which is also a signatory.
• Under the treaty, Pakistan receives rights over the three western rivers — Indus, Jhelum, and Chenab — while India retains control over the three eastern rivers — Ravi, Beas, and Sutlej.
• The treaty effectively gives Pakistan access to nearly 80% of the waters of the Indus river system, while India retains around 20%, along with limited usage rights on the western rivers for irrigation, power generation, and other non-consumptive purposes.
• The treaty sets out a cooperation and information-exchange mechanism called the Permanent Indus Commission (PIC), which serves as the first tier of dispute resolution.

Dispute Settlement Mechanism Under IWT

The IWT provides a graded three-tier dispute resolution structure:

• Tier 1: Permanent Indus Commission (PIC): Bilateral body of commissioners from both sides. Handles routine “questions.”
• Tier 2:  Neutral Expert: Appointed by the World Bank on request of either party. Handles technical “differences.”
• Tier 3:  Court of Arbitration (CoA): Invoked for unresolved “disputes” of a legal or treaty-interpretation nature.

Source: TH