Hectic talks on over Kishenganga project

The Indian government is making all efforts to save the strategic Rs 4,000-crore Kishenganga hydro-electric project on the Kishenganga River (known as the Neelum River in Pakistan), as it readies to file a rejoinder on Pakistan’s reply before the International Court of Arbitration (COA) at The Hague by May 21, 2012. Anupama Airy reports.

The Indian government is making all efforts to save the strategic Rs 4,000-crore Kishenganga hydro-electric project on the Kishenganga River (known as the Neelum River in Pakistan), as it readies to file a rejoinder on Pakistan’s reply before the International Court of Arbitration (COA) at The Hague by May 21, 2012. Hectic talks are on between the the ministry of external affairs (MEA) and power to salvage the project that is in very advance stage of construction and on which Rs 2,500 crore has already been expended.

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The 330-MW project is located in the Bandipora district of J&K and is a run-of-the-river scheme, involving transfer of Kishenganga water in Gurez valley to Bonar Madmati nallah near Bandipora in Kashmir valley. Pakistan, which is also building a hydropower project (called the Neelum-Jhelum project) on the same river, has objected to the Kishenganga project contending that its construction of will adversely impact their development.

Few rounds of submissions have already taken place in the COA and submissions are in the final stage.

“In all probability, it does not appear likely that the work on the project would require to be stopped, but if the court accepts Pakistan’s contentions, in the worst scenario, India may be put to a financial loss as already Rs 2,500 crore has been spend on the project,” said a senior government official who is part of the strategic negotiations to salvage this project.

Officials said the project is governed by Indus Waters Treaty 1960, between India and Pakistan which inter-alia provides for examination of the projects. “The treaty is administered through a Permanent Indus Commission (PIC) in which both the countries are represented by respective commissioners and other officials,” the official said.

“The issue came up for discussion on numerous meetings of the PIC resting with 103rd meeting held at New Delhi between May 31 to June 5, 2009 where Pakistan raised certain questions but could not be resolved.”

According to Pakistan, the Kishenganga project envisages the diversion of the waters of the Kishenganga/Neelum into Bonar-Madmati Nallah.