NEW DELHI, 5 January 2005 — Amid the backdrop of speculations being voiced on whether India and Pakistan will reach an agreement on Baglihar Dam being constructed in Jammu and Kashmir, the two sides began two-day talks on the controversial issue yesterday in New Delhi. The controversial project across River Chenab is due to be ready this year.

An attempt is being made to break the deadlock by Pakistan delegation led by Water and Power Secretary Ashfaq Mohammad and the Indian team headed by V.K. Duggal, secretary, Water Resources.

Ahead of the talks, the Pakistan delegation called on Union Water Resources Minister Priyaranjan Dasmunshi and held a 20-minute meeting with him. Pakistan High Commissioner to India Aziz Ahmed Khan and Duggal, head of the Indian team, were also present.

While prospects of India and Pakistan agreeing to see eye-to-eye on the controversial project are limited, the differences are not expected to have a negative impact on attempts being made to normalize the ties between the ever-warring neighbors. Pakistan has threatened to approach the World Bank, if New Delhi and Islamabad fail to reach any agreement on the crucial issue.

Pakistani Foreign Ministry spokesman Masood Khan said in Islamabad: “This is the last-ditch effort to find a solution through bilateral channels. We have reservations and objections and these have been specified. If we do not see any indication of movement towards a resolution of this issue ... we go to the World Bank.” He has also specified that the failure of Baglihar talks should not be expected to affect the ongoing composite Indo-Pak dialogue process. “It will have no effect on the composite dialogue as this is completely a different track,” he said.

Islamabad has objections to the dam — a huge Baglihar hydropower project — being constructed on the Chenab River on the ground that it would adversely affect water flow into Pakistan. Under the Indus Water Treaty, India has rights over the waters of Ravi, Sutlej and Beas Rivers while Pakistan has rights over the waters of the Indus, Chenab and Jhelum.

All the rivers flow from India to Pakistan. India’s argument is that the dam design on Chenab does not violate provisions of the Indus water treaty.

Even though the two sides have held several rounds of talks, till late they have not erased differences on this crucial issue. During the last secretary-level meeting in June 2004, ways and means to resolve the issue were formulated. India furnished all possible data/information/drawings requested by Pakistan on the 450-megawatt Baglihar project on Dec. 15.

Islamabad is also concerned about the project posing a strategic threat, providing India with control over waters essential to agriculture in Punjab (Pakistan). It may enable India to stop water causing acute shortage in Pakistan or release excess water creating flood-like situations there, according to Pakistani analysts.

Dismissing Pakistan’s concern, India wants Islamabad to give consideration to the power project being a necessity for the Kashmiris in Jammu and Kashmir.