Hague Court Orders India to Limit Hydro Project Work and Uphold Indus Waters Treaty

The Permanent Court of Arbitration in The Hague has ruled that India must restrict construction work on a hydroelectric project in the Kashmir region and continue to abide by the Indus Waters Treaty with Pakistan.

In a decision issued on Monday, the court stated that the 1960 Indus Waters Treaty remains fully in force. It found that India had no legal basis to terminate or suspend the agreement, which it placed in abeyance in April 2025 following heightened tensions with Pakistan.

The tribunal directed that India limit certain works at the Ratle Hydro-Electric Plant pending further review. A Neutral Expert appointed by the World Bank is expected to determine by July 2027 whether the design and construction of the hydroelectric projects in the Himalayan region comply with the treaty’s provisions.

The ruling comes amid ongoing disputes over India’s run-of-river hydroelectric schemes on the Western Rivers of the Indus basin. Pakistan has long argued that aspects of the projects, including Kishenganga and Ratle, exceed the limited rights granted to India under the treaty.

India has consistently rejected the court’s jurisdiction, describing the tribunal as illegally constituted and maintaining that the treaty remains in abeyance until Pakistan takes credible steps against cross-border terrorism. New Delhi has not participated in the arbitration proceedings.

The latest award reinforces earlier findings by the same court that the treaty’s obligations continue and that unilateral suspension is not permitted under its terms or applicable international law.