India rejects award by Court of Arbitration on pondage at hydel projects on Indus system

BILATERAL – INDIA-ASIA

17 MAY 2026

  • India rejected an award reportedly issued by the Court of Arbitration (CoA) at The Hague, concerning maximum pondage at Indian hydroelectric projects on the Indus river system, reiterating that it does not recognise the tribunal as legitimately constituted.
  • “India categorically rejects the present so-called award, just as it has firmly rejected all prior pronouncements of the illegally constituted CoA,” Ministry of External Affairs spokesperson said.
  • India’s decision to hold the Indus Waters Treaty in abeyance, he said, remained in force.
  • A three-day hearing was held on April 28, 2026 on Pakistan’s request for interim measures and the status of the Treaty itself.

Court of Arbitration (CoA), The Hague

  • The CoA is a five-member arbitral panel constituted in January 2023.
  • It was set up at Pakistan’s request after Islamabad challenged the design of India’s Kishenganga and Ratle hydroelectric projects.
  • India has refused to participate, arguing that the technical questions involved fall within the remit of a Neutral Expert appointed in parallel by the World Bank.
  • In its August 2025 Award on Issues of General Interpretation, the CoA ruled largely in Pakistan’s favour, restricting how India calculates permissible pondage for run-of-river plants under the Treaty.
  • Permanent Court of Arbitration acts as the secretariat to the CoA.

Kishenganga hydroelectric project

  • The Kishanganga Hydroelectric Project is a 330 MW run-of-the-river facility situated on the Kishanganga River (a tributary of the Jhelum) in the Gurez Valley and Bandipora district of Jammu and Kashmir.
  • Kishanganga River is called Neelum in Pakistan.
  • Construction on the project began in 2007 and was expected to be complete in 2016.
  • It was halted in 2011 due to a dispute with Pakistan under the Indus Water Treaty, which went to a court of arbitration.
  • In December 2013, the Court ruled that India could divert water for power generation while ensuring a minimum flow of 9 cumecs (m3/s) downstream to Pakistan.
  • It became operational in May 2018 and is operated by NHPC Limited.

Ratle hydroelectric project

  • The Ratle Hydroelectric Project is an 850 MW run-of-the-river scheme under construction on the Chenab River in the Kishtwar district of Jammu and Kashmir.
  • A 133-meter-tall and 194.8-meter-long concrete gravity dam is proposed.
  • The Ratle Hydroelectric Project initially broke ground and started construction in June 2013.
  • The project was stalled due to local opposition, contractual issues, and cross-border disputes under the Indus Waters Treaty.
  • The project was restructured and restarted with renewed construction agreements in 2021.
  • The project is developed by the Ratle Hydroelectric Power Corporation (RHPCL), a joint venture between NHPC Limited and the Jammu and Kashmir State Power Development Corporation

Sawalkot Hydroelectric Project

  • The Sawalkot Hydroelectric Project is an 1,856 MW run-of-the-river hydropower plant located on the Chenab River in the Ramban and Udhampur districts of Jammu and Kashmir.
  • Developed by the NHPC Limited, it is the largest hydroelectric development in the Union Territory.
  • The project was officially kicked off in February 2026, and aims to be completed in about 9 years

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