World Bank press release says
“India is allowed to construct hydroelectric power facilities on tributaries of the Jhelum and Chenab rivers with certain restrictions under the 1960 Indus Waters Treaty (IWT).
“Among other uses, India is permitted to construct hydroelectric power facilities on these rivers subject to constraints specified in annexures to the treaty,” the Bank said in its fact sheet.
The IWT was signed in 1960 after nine years of negotiations between India and Pakistan with the help of the World Bank, which is also a signatory.
Pakistan opposes the construction of the Kishanganga (330 megawatts) and Ratle (850 megawatts) hydroelectric power plants being built by India in Jammu and Kashmir. Pakistan had approached the World Bank last year, raising concerns over the designs of two hydroelectricity projects located in Jammu and Kashmir.
Earlier India has threatened to re visit Indus Waters Treaty to put pressure on Pakistan to stop cross border terrorism. Since then the two nations are involved in bitter war of words. The present stand taken by the World Bank has been a set back for Pakistan.