India Rejects Hague Ruling on Indus Waters Treaty as Jammu & Kashmir Advances Hydropower Projects

India has formally rejected a ruling by a Court of Arbitration in The Hague, maintaining that the 1960 Indus Waters Treaty remains in abeyance. New Delhi stated that the tribunal was illegally constituted and lacks jurisdiction over India's sovereign decisions.

This geopolitical development has brought Jammu and Kashmir's long-standing concerns regarding the usage of its river waters back into focus, coinciding with an accelerated build-out of hydropower infrastructure in the Chenab basin. The Chenab is one of the three western rivers covered under the treaty, for which Pakistan holds unrestricted use, while India is permitted limited usage for purposes such as hydropower generation under specified conditions.

Political leaders in Jammu and Kashmir have historically argued that the treaty restricts the region from fully benefiting from its water resources. Chief Minister Omar Abdullah expressed support for the suspension of the treaty last month, asserting that the pact has severely impacted the region. Similarly, in 2016, former Chief Minister Mehbooba Mufti stated that Jammu and Kashmir incurred losses due to the Indus Waters Treaty and sought compensation from the Central government. Conversely, former Union Minister of Water Resources Saifuddin Soz expressed a differing view, stating to businessline that the treaty promotes regional peace and should be restored.

The debate comes at a time when the Centre has increased efforts to accelerate work on several major hydropower projects on the Chenab and its tributaries. Key projects currently under development include Pakal Dul, Kiru, Kwar, and Ratle, which are expected to substantially expand the region's overall hydropower capacity.

Regional stakeholders are evaluating whether altering the status of the treaty will eventually enable greater utilisation of local water resources. Shahnawaz Hussain, a political analyst from Kashmir, noted that the suspension of the treaty could potentially create greater room for Jammu and Kashmir to utilise its water resources for hydropower. However, he emphasized that the ultimate measure of success will be whether this shift converts into increased power generation, investment, and financial returns for the region.

"The legal and diplomatic developments surrounding the Indus Waters Treaty highlight the critical intersection of national policy and regional economic infrastructure. For Jammu and Kashmir, the ongoing acceleration of hydropower projects in the Chenab basin represents a significant infrastructure push. From a business and economic standpoint, the ability to successfully execute and scale projects like Pakal Dul, Kiru, Kwar, and Ratle will determine whether the region can effectively translate energy capacity into long-term commercial revenues, private investments, and sustainable regional growth." — Dr. Shishir Gupta, Founder & CEO, StartupLanes