The Indus Water Distribution Treaty between India and Pakistan was brokered by the International Bank for Reconstruction and Development (which later became the World Bank) in 1960 to use the water available in the Indus system of rivers originating in India.
This was signed by the Indian Prime Minister Pandit Jawaharlal Nehru and the Pakistani President Ayub Khan.
TERMS OF THE INDUS WATERS TREATY, 1960
As per this treaty, the eastern rivers Sutlej, Beas and Ravi are controlled by India; and the western rivers Indus, Chenab and Jhelum are governed by Pakistan. This means, India has unrestricted usage rights over the eastern rivers. And, India should allow unrestricted flow of the western rivers into Pakistan.
India can use 20% of the water of the Indus for irrigation, transport and power generation since it originates in India.
India has also been given the right to generate hydroelectricity through the run of the river (RoR) projects on the western rivers.
India can use the waters of the Chenab and Jhelum for consumption purposes but cannot build any storage or irrigation systems on the western rivers aside specific cases.
When the treaty was signed, India was to supply water to Pakistan from the eastern rivers for ten years until Pakistan built a canal system for using the waters of the Indus, Jhelum and Chenab.
Towards this canal system, India contributed £62,060,000 in ten installments.
A Permanent Indus Commission was also set up to manage the treaty and to resolve any issues. An arbitration mechanism was set up to solve disputes amicably.
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