ISLAMABAD, Jan 13: A seven-member team headed by the Indian Commissioner for Indus Waters is arriving here on Thursday to discuss construction of the Baglihar dam on the Chenab river in occupied Kashmir , sources told Dawn on Tuesday.

Both sides will hold a three-day meeting, beginning Friday at the Ministry of Water and Power. Pakistan Commissioner for Indus Waters Syed Jamaat Ali Shah will lead the Pakistani team.

The meeting, which has been convened on the request of the Indian side, is being considered crucial for the resolution of the issue bilaterally. "In the spirit of cooperation we have decided to give India another chance to resolve the matter bilaterally," a senior official told Dawn on Tuesday.

Dates for the meeting were communicated to India last week, the sources said. Technical and legal experts from both sides will also attend the special meeting.

The request for the meeting came after Pakistan served a second notice on India in early December, asking it to immediately suspend work on the project and settle the issue amicably by Dec 31, 2003.

At the heart of the dispute is the design of the project, which, according to Pakistan, provides for submerged gated spillways and, therefore, Indian control over Pakistani waters in breach of the 1960 Indus Waters Treaty.

Islamabad has indicated to New Delhi that if its concerns were not addressed adequately, it would have no option but to go to the World Bank for appointment of neutral experts.

Apparently, the government had earlier decided that if India failed to respond to its demand by Dec 31, it would immediately seek the intervention of the World Bank.

The World Bank had brokered the treaty and also stands as its guarantor.The bilateral water-sharing treaty gives both the countries the third-party option in case of a deadlock over any issue. Article IX of the treaty provides for settling disputes through neutral experts or arbitration if they cannot be resolved between the two commissioners.

Pakistan served the first notice on India in August before the visit of a team of technical experts, led by the Pakistan Commissioner for Indus Waters, to occupied Kashmir where it conducted an on-site inspection of the under-construction Baglihar dam.

The team on its return reported that the inspection tour had confirmed Pakistan's apprehension that the Baglihar hydroelectric project violated the Indus Waters Treaty. The team found against the Indian contention that the site was not suited for ungated spillways and also concluded that the pondage facility exceeded twice the storage capacity allowed under the treaty.

Pakistan Indus Waters Commissioner later conveyed the objections and reservations of the team to his Indian counterpart. Pakistan has already alerted the relevant World Bank officials in Washington on this matter.

Pakistan's main concern is that the gated structure would provide India the capability to manipulate flow of water to Pakistan's disadvantage. One serious consequence is that it would arm India with the capability to cause acute water shortages in Pakistan. Technical experts warn it could deprive Pakistan of up to 8,000 cusec of water per day.

The 450mw Baglihar hydroelectric plant project, launched in June 1999, is expected to begin generation this year. Meanwhile, in official circles here the meeting is being seen as yet another time-buying ploy by India. India has been dragging its feet over the Baglihar issue since May 1999 when Pakistan first objected to its design.