ISLAMABAD, July 14: Pakistan has refused to allow even a minor diversion of Neelum River by India because that could jeopardize the development of Rs87 billion Neelum-Jhelum power system in Azad Kashmir.

Informed sources told Dawn that New Delhi had requested Islamabad to allow it diversion of Neelum waters in the held Kashmir for power generation. It had assured that there would be no storage and the diverted water would be re-routed into the Neelum through Wullar Barrage.

Riaz Ahmad Khan, chief engineering advisor and Chairman, Federal Flood Commission, told this correspondent that the Wapda, in consultation with the government, was working on a war-footing to arrange finances for the project. He said that once Pakistan started construction of the project, India could not divert the river waters under the Indus Waters Treaty, 1960.

Pakistan had presented its point of view on the subject during the permanent Indus Commission meeting over a month ago as it believed the diversion would definitely affect the Neelum-Jhelum project because of the close vicinity. Through a communication a few days ago, New Delhi was once again reminded not to start diversion work.

Sources said that diversion by India would not reduce the overall water level in the Neelum on the Pakistani side of the LoC but this would affect the river flow. Decline in the river flow reduces the pressure required to generate electricity.

But if Islamabad did not start construction of Neelum-Jhelum Hydropower project near Azad Kashmir’s capital Muzaffarabad immediately, it is obliged under the treaty to allow India use these waters for power generation without storage.

Under the treaty, India could not change the river flow of Neelum river even for power generation that could affect any Pakistani power project. But if there is no power project in Pakistan that could be affected, India could divert the river for run-of-the-river project but without any storage.