ISLAMABAD, Dec 1: Pakistan has decided to start construction of Rs87 billion 960-MW Neelum-Jhelum power project in Azad Kashmir on a fast track basis to maintain its legal rights over the Jhelum river.

Sources in the water and power ministry said if the project is not started immediately, it would be obliged under the 1960 Indus Waters Treaty to allow India divert Jhelum waters for power generation.

These sources said that Wapda has offered to make available Rs10 to Rs15bn out of its own resources and has asked the federal government to arrange similar amount to start the project on war-footings within the current fiscal year.

The Wapda believed that more funds could be arranged through external sources or made available through next year’s public sector development programme but the main question is to start the project immediately.

The Wapda has now prepared even the documents for inviting letters of interest (LOIs) from the private sector to construct the 960-MW run-of-the river project. It understands that if allowed immediately the construction could be started within four months. A couple of months earlier Pakistan had refused to allow even a minor diversion of Jhelum river by India because that could have jeopardized the development of Neelum-Jhelum power system in Azad Kashmir.

New Delhi had requested Islamabad to allow the diversion of Ganga waters in the held Kashmir for power generation from its proposed Kishanganga project. The Jhelum is called Ganga in Indian side. It had assured that there would be no storage and the diverted waters would be re-routed into the Jhelum through Wullar barrage.

A senior official in the office of chief engineering advisor/federal flood commission said that once Pakistan started construction of the project, India could not divert the river waters under the Indus Waters Treaty 1960.

Pakistan has already put India on a notice to remove its concerns on 450-MW Baglihar project on the Chenab by Dec 18 or it would consider third party option under the treaty. Pakistan had presented its point of view on the subject during the permanent Indus commission meeting in May/June as it believed the diversion would definitely affect the Neelum- Jhelum project because of the close vicinity.