Kishan Ganga, known as Neelum River in Pakistan and Pak-Occupied Kashmir, is the largest tributary of the Jhelum, joins it, at Domel, Muzaffarabad. The Jhelum enters the Punjab in the Jhelum District.
Kishanganga Power Project
India is building a 330 MW hydroelectric power project. This project was awarded to Hindustan Construction Company Ltd, with a timeline of 7 years. This project involves the diverting of the water of the river to Jhelum through a 27 kilometer tunnel. Pakistan is also building a 969 MW hydroelectric power project. This project has been awarded to a Chinese consortium.
Pakistan says that India is violating the 1960 Indus Water Treaty by diverting the route of the river. India denies this. Pakistan has taken this issue to the United Nations.
Stands of India and Pakistan
According to India, the treaty allows it to divert Kishanganga waters to the Bonar Madmati Nallah, another tributary of the Jhelum, which falls into the Wullar Lake before joining the Jhelum again. Pakistan objects to this saying India's plans to divert waters will obstruct the flow of the river affecting its Neelum-Jhelum project downstream. Pakistan took this matter to United Nations because both countries have signed Indus Water treaty.
Court of Arbitration
In 2010, Judge Stephen M. Schwebel, former President of the International Court of Justice, has been appointed head of the Court of Arbitration being constituted to resolve the Kishanganga hydroelectric project dispute between India and Pakistan. Judge Schwebel is an expert on international law and dispute settlement. In May 2012, a high-level team of water commissioners from India and Pakistan and members from the International Court of Arbitration inspected the project site.
In 2011, the seven-member court had last year barred India from proceeding with the construction of any "permanent works" on or above the Kishanganga/Neelum riverbed at the Gurez site that may inhibit the restoration of the full flow of the river to its natural channel in an interim order. After one year, the International Court of Arbitration at Hague is expected to hold its final hearing in August 2012 on the dispute. The final verdict is expected by the end of 2012.