India has refused to be party to a decision of the World Bank on the dispute between India and Pakistan on the Kishenganga and Ratle hydroelectric projects in J&K wherein the World Bank has accepted Pakistan’s request for establishment of a court of arbitration while also accepting India’s request for appointment of a neutral expert. India feels that proceeding with two parallel mechanisms is “legally untenable” under the Indus Water Treaty between the two countries and is examining further options.
‘’Under the Indus Waters Treaty, signed between India and Pakistan and also the World Bank in 1960, the World Bank has a specified role in the process of resolution of differences and disputes. On the issue of differences between India and Pakistan on Kishenganga and Ratle Hydroelectric Projects under the Indus Waters Treaty, India had asked the World Bank to appoint a Neutral Expert to resolve the differences of a technical nature which are within the domain of a neutral technical expert. Pakistan had sought the establishment of a Court of Arbitration, which is normally the logical next step in the process of resolution in the Treaty. The Neutral Expert can also determine that there are issues beyond mere technical differences. The World Bank has decided to proceed with both steps simultaneously. It was pointed by the Government to the World Bank that the pursuit of two parallel difference/ dispute resolution mechanisms — appointment of a Neutral Expert and establishment of a Court of Arbitration — at the same time is legally untenable,” the MEA said in a statement.
