President Musharraf and Prime Minister Manmohan Singh during their high profile 'cricket diplomacy' could not reach an understanding on Baglihar issue. India prefers a bilateral process to resolve the problem; but this progress has been very slow and the issue not even figuring in the Indo-Pak Joint Statement. What are the road blocks to resolving the Baglihar dispute? Does the sidelining of the issue affect the ongoing peace process?

The bilateral peace process would be incomplete if the issues of water sharing and Baglihar dam are sidelined. Water scarcity is a serious source of conflict and the pressure over sharing of water resources has been increasing in the sub-continent. During his visit to New Delhi in November 2004, the Pakistan Prime Minister raised the matter with the Indian Prime Minister. He wanted to halt the project, while details are discussed at the technical level. With India asking Pakistan for an alternative design whose details are being examined by India, Pakistan has reiterated its demand for halting of the construction. Dates have been finalised for discussions on other water discords such as Wullar barrage on the Jhelum and Kishanganga, sidelining the Baglihar dam.

India will halt construction of the controversial Baglihar Dam only when the Indo-Pak Joint Committee on Useable Water Resources is formed and Pakistan will not withdraw its case from the Word Bank until the construction work is suspended by the former. This is also the pre-condition set by the latter for any talks to take place. From the Pakistani side the Baglihar dam is a serious violation of the Indus Water Treaty (IWT). For India, it is a roadblock to the development process in the region and a hurdle to the government's efforts in meeting the vital energy needs of Jammu and Kashmir. The fact that it is an undertaking of the Government of Jammu and Kashmir has also brought out allegations by the Pakistani side that it is a deliberate attempt by the Indians to politicise the issue and show the Pakistani objections to the dam are against the development of the state.  These intertwining issues have scurried the matter into a deadlock.

The World Bank prefers an amicable bilateral settlement of the dispute to preserve the spirit of the treaty. Prime Minister Manmohan Singh recently stated emphatically that India would not violate the spirit of the IWT. To make the ongoing peace process truly 'irreversible' and give credibility to the other CBMs, it is imperative to accelerate the discussions on Baglihar and address the critical issue of water sharing in a region prone to conflict.

Pakistan's decision to approach the World Bank for arbitration only shows the need to move forward expeditiously in solving the issue. The two sides should also be looking into the possibility of broadening the scope of the IWT. Under the treaty, India is not entitled to draw water from the three western rivers, which flow from the Indian state of Jammu and Kashmir. The exceptions provided are domestic, non-consumptive and agricultural use, and for generation of hydroelectric power. In the late 1990s India started constructing a dam at Baglihar, Jammu and Kashmir. Pakistan believes the Baglihar project will divert significant amounts of water destined for Pakistan. India and Pakistan initially tried to resolve the differences through bilateral talks. But since no breakthrough was achieved, Pakistan has sought arbitration under the treaty.

Talks on Baglihar dam have not been ruled out and proposals for informal talks have been put forth. These negotiations, of course  would  be informal as  Pakistan's request for the appointment of neutral expert to settle the crucial matter is currently under the World Bank's consideration. Both sides have formally received from the World Bank names of three internationally renowned experts on water issues in the first step towards the appointment of a neutral expert for arbitration on the Baglihar dam dispute with India. An agreement over the Baglihar project over the river Chenab affecting the developmental needs of millions of people on both sides of the border could definitely be a critical confidence building measure between the two countries, which have shared a history of valuing the Indus Water Treaty even during war time. The ongoing negotiations on the Kishanganga hopefully set the ball rolling for the Baglihar negotiations as well.