India rejected the ruling issued by the Permanent Court of Arbitration (PCA) in The Hague

¨     India rejected the ruling issued by the Permanent Court of Arbitration (PCA) in The Hague.

¨     The ruling related to limits on the “maximum reservoir capacity” of Indian hydropower projects on the Indus river system.

¨     India stated that the tribunal was “illegally constituted.”

¨     India reiterated that the 1960 Indus Waters Treaty (IWT) has been in abeyance since the 2025 Pahalgam terror attack.

¨     The dispute primarily concerns two hydropower projects in Jammu and Kashmir:

¨     Kishanganga project (330 MW run-of-the-river project on a tributary of the Jhelum River)

¨     Ratle project (850 MW hydropower project on the Chenab River)

¨     Pakistan has objected to the design features of these projects.

¨     It argues that reservoir capacity and spillway structures violate the Indus Waters Treaty and may affect downstream water flow.

¨     Pakistan also claims that India is constructing storage capacity beyond what is technically required for power generation.

¨     India argues that running two parallel dispute resolution mechanisms violates the treaty’s sequential dispute settlement process.

¨     In 2016, Pakistan approached the World Bank to constitute a Court of Arbitration (CoA).

¨     India simultaneously requested a Neutral Expert to review technical design issues.

¨     The World Bank paused both processes in 2016 to avoid conflicting outcomes, but lifted the pause in 2022.

¨     India participated in the Neutral Expert process but rejected the Court of Arbitration process, calling it invalid and parallel to treaty provisions.

¨     After the April 2025 Pahalgam terror attack, India placed the Indus Waters Treaty in a “held in abeyance” status, linking it to national security concerns.

¨     India stated that this will continue until Pakistan ends cross-border terrorism in a complete and irreversible manner.