Big blow to India as global court suspends hydropower project in held Kashmir

Indus Waters Treaty stays in force as PCA restricts Ratle project work. File photo
Indus Waters Treaty stays in force as PCA restricts Ratle project work. File photo
Published September 1, 2026 12:00 AM | Updated at September 1, 2026 06:22 PM
(Web Desk): The Indus Waters Treaty (IWT) remains fully in force as the Permanent Court of Arbitration (PCA) ordered restrictions on the work at the Ratle hydropower project in occupied Kashmir after rejecting India’s IWT move.

The Hague-based court examined India’s decision to place the treaty in abeyance and Pakistan’s request for interim measures concerning the Ratle Hydroelectric Plant. In a unanimous decision, the PCA said India must continue meeting its obligations under the treaty.

Restrictions on Ratle project

The PCA ordered India not to concrete parts of the Ratle dam wall and power intake structure above specified levels until 90 days after a neutral expert gives a final decision. The court also introduced a reporting requirement linked to the project’s construction schedule.

The Ratle and Kishenganga projects are also being examined by a World Bank-appointed neutral expert. The expert is expected to issue a final decision in July 2027 on whether the projects comply with the Indus Waters Treaty.

Why India’s suspension was rejected

The court said the treaty does not allow either country to unilaterally suspend or terminate it. It noted that the agreement can only be changed or ended when Pakistan and India agree through another treaty.

The PCA also rejected several arguments cited by India, including claims about terrorism, sovereignty, changing circumstances and armed conflict. The court said these arguments did not meet the legal conditions needed to suspend the treaty.

Pakistan welcomes ruling, India rejects it

Pakistan welcomed the PCA’s finding that India remains bound by the Indus Waters Treaty and must follow its obligations. The government said it would study the full award and decision before considering the next steps.

India rejected the ruling and said it does not recognise the court’s authority in the matter. India’s Ministry of Foreign Affairs called the decision invalid and said the court had no jurisdiction over India’s sovereign decisions.

The ruling gives Pakistan a significant legal argument in the dispute over shared rivers. However, the wider disagreement is not over, as India has rejected the PCA’s authority and another expert decision on the hydropower projects is still pending.

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