BAGLIHAR DAM In 2001, India began the construction of a dam on the Chenab River at Baglihar, a site in the part of Kashmir that was under its rule The dam was intended to produce 450 megawatts (MW) of power during the first phase of use in the Indian state of Jammu and Kashmir Another 450 MW of generation capacity was to be added later But the government of Pakistan maintained that the dam, as engineered, could also divert water for irrigation, thus violating the Indus Water Treaty of 1960 The design of the dam included gated spillways which, according to Pakistan’s experts, were not required to generate electricity but could be used to divert water from the river This would seriously affect the flow in the river as it passed into Pakistani territory After a series of inconclusive talks between senior officials from the two sides that began on 13 January 2003 and continued intermittently for two years, Pakistan invoked the arbitration clause in the Indus Water Treaty and in January 2005, referred the matter to the World Bank for resolution This was done on 6 January 2005 after talks between the two sides failed Pakistan wanted India to halt construction on the dam until all issues were resolved The subject of the dam was raised at the summit meeting between Prime Minister Manmohan Singh of India and Pakistan’s President Pervez Musharraf, on 19 April, 2005

While no specific mention was made in the joint statement issued at the conclusion of the meeting, India signaled that it would be willing to stop construction of the dam and change the design if Pakistan withdrew the complaint from the World Bank It also signaled to Pakistan that it would be prepared to have the matter resolved with the help of a neutral expert appointed by the World Bank, with agreement of both sides

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