PCA Blocks Key India Hydropower Work on Western Rivers
THE HAGUE: The Permanent Court of Arbitration (PCA) ruled on Monday that India must continue to honour the Indus Waters Treaty with Pakistan and ordered it to suspend certain construction work on the Ratle hydropower project in Kashmir.
The decision followed India’s unilateral announcement in April 2025 that it was placing the 1960 water-sharing agreement in abeyance. Pakistan rejected the move, saying the treaty contained no provision allowing either country to suspend it on its own. Islamabad also warned that any attempt to restrict its agreed water share would be considered an “act of war”.
In its unanimous ruling, the Hague-based court said the treaty remained fully in force and that India had no legal grounds to terminate or suspend it. The court examined the arguments put forward by New Delhi, including claims linked to sovereignty, terrorism, changing circumstances and armed conflict, but found that none of them justified India’s decision, as reported by The Dawn News.
The treaty gives India control over the eastern rivers the Ravi, Beas and Sutlej, while allocating the western rivers the Indus, Jhelum and Chenab mainly to Pakistan. It also establishes procedures for the exchange of information and the settlement of disputes.
The court’s order concerned India’s Ratle and Kishenganga hydropower plants. It prohibited India from concreting parts of the Ratle dam wall and power intake structure above specified levels until 90 days after a neutral expert issues a final decision. That decision is expected in July 2027. The PCA also imposed a reporting requirement linked to the Ratle project but rejected two other measures requested by Pakistan.
Pakistan had argued that certain design features of India’s run of river hydropower projects could affect the flow of water into Pakistan. The court said the treaty allowed India to build such projects but required it to follow specific design and operating rules.
Islamabad welcomed the ruling, saying it would study the full award before deciding how it could help restore engagement between the two countries under the treaty.
India, however, rejected the decision. Its Foreign Ministry said the so-called Court of Arbitration had no jurisdiction over India’s “sovereign decisions”. India did not take part in the written or oral proceedings, although the PCA reviewed public statements and official communications to assess New Delhi’s position.
The dispute began in 2016, when Pakistan initiated arbitration proceedings. After several delays, the process resumed in 2022. The PCA later ruled that India’s declaration of abeyance could not limit the court’s authority to hear the case.
The latest ruling is likely to add fresh tension to relations between the nuclear armed neighbours, for whom control of shared water resources remains one of the most sensitive issues.
