ISLAMABAD, Dec 13: An inter-provincial meeting failed here on Monday to resolve the Sindh-Punjab dispute over the Rs2.5 billion remodelling of the Thal Canal project, it is learnt.

The meeting, presided over by Minister for Water and Power Liaqat Ali Jatoi, however, constituted a technical committee to end the deadlock over the project whose cost has increased by more than 80 per cent due to delays.

The sources said the new committee comprised irrigation and power secretaries of the two provinces and their technical experts. A meeting of the Executive Committee of the National Economic Council (Ecnec) presided over by Prime Minister Shaukat Aziz had deferred the approval of the project last week following strong resistance from Sindh.

These sources said Sindh had taken the stand that unless water requirements downstream Kotri were established by two separate studies currently under process, the capacity of Thal canal could not be allowed to increase from 7,500 cusecs to 9,000 cusecs.

Similarly, they have pointed out that the technical committee on water resources constituted by the President has not yet given its report on total water availability in the country and hence it could not be ascertained whether or not additional water required for the Thal canal was really available.

Moreover, they contended that Sindh was not provided any evidence that additional water for the project would be available through three-month flood season and if it is accepted, the lower riparians would have to revise their 10-daily water requirements altogether in a changed fashion which would not be beneficial to Sindh.

The sources said the Punjab contended that the project had already been approved by the Executive Committee of the National Economic Council (Ecnec) in 1995 and all these concerns stood settled under that decision.

They also pointed out that the revised approval by Ecnec related only to the cost of the project that had increased from Rs1.391 billion in 1995 to Rs2.421 billion in 2004.

An official statement said the government of Punjab gave the justification for the Thal project. "The government of Sindh expressed its serious reservations," the statement said.

It said in pursuance of the decision of Ecnec regarding remodelling of the Thal Canal project in its meeting held on December 7, 2004, a meeting was held here on Monday.

The meeting was attended by Aamir Sultan Cheema, Punjab Minister for Irrigation and Power; Sardar Nadir Akmal Khan Leghari, Sindh Minister for Irrigation and Power; Suleman Ghani, Chairman, Punjab Planning and Development Board; secretaries of Irrigation and Power of both provinces and Irsa Chairman.

The Minister for Water and Power, after hearing the points of view of the two provincial governments, decided to constitute a committee consisting of secretaries of irrigation and power of Punjab and Sindh and their technical teams to resolve all issues and concerns and come up with a report, the statement added.