Pakistan Foreign Ministry spokesperson Tahir Andrabi told a press briefing in Islamabad that the projects demonstrated an effort by New Delhi to use water resources as a strategic tool, warning that any move endangering Pakistan’s water security would be met with measures to protect national interests.

“These projects confirm that India seems to weaponize water,” Andrabi said, adding that the initiatives carried serious implications for Pakistan’s economy, regional peace and international security.

The dispute centers on two Indian projects linked to the Chenab River, one of the western rivers allocated to Pakistan under the 1960 Indus Waters Treaty. Islamabad says India failed to consult Pakistan before proceeding with the developments.

In May, India’s state-owned National Hydroelectric Power Corporation issued a tender for a proposed tunnel project designed to transfer water from the Chenab River to the Beas basin. Earlier this year, India’s power ministry also announced sediment-removal work at the Salal Power Station on the Chenab, stating that the activity followed New Delhi’s suspension of the Indus Waters Treaty.

India maintains that it is acting within its rights regarding waters under its control. New Delhi has also insisted that its decision to place the treaty in abeyance remains effective despite objections from Pakistan.

The water-sharing agreement, brokered in 1960, has long been regarded as one of the few enduring frameworks of cooperation between the two rivals, surviving multiple wars and periods of severe political tension.

Pakistan argues that the treaty remains legally binding and has repeatedly rejected India’s suspension of the accord. Andrabi said there was no provision allowing either country to unilaterally withdraw from the agreement.

“Any illegal measure to endanger Pakistan’s water, food and economic security as well as the survival and wellbeing of its 250 million people is unacceptable,” he said.

He added that Pakistan would retain all available options to safeguard its rights under the treaty, though he did not specify what actions Islamabad might pursue.

The disagreement has intensified since India suspended its participation in the treaty following an April 2025 attack on tourists in Indian-administered Kashmir. New Delhi blamed Islamabad for supporting the attack, an allegation Pakistan denied.

The diplomatic fallout contributed to a sharp military escalation in May 2025, when the two countries exchanged drone, missile and artillery fire, leaving nearly 70 people dead on both sides.

The treaty dispute has also reached international arbitration. Pakistan welcomed a May 15 ruling by a Hague-based arbitration body that it said reinforced the treaty’s continued validity. India rejected the decision, describing the tribunal as illegally constituted and reiterating that its suspension of the agreement remained in force.

Analysts have increasingly warned that water management could become a major source of friction in South Asia as climate change, population growth and agricultural demand place mounting pressure on shared river systems.

The decision reflects the company’s commitment to transparency, mutual cooperation, and maintaining strong energy relations between the two neighboring nations.

The company clarified that the move toward arbitration aims to ensure a fair and efficient resolution process that benefits both sides.

Adani Power emphasized that the disagreements are primarily related to technical aspects of cost calculation and billing under the existing power purchase agreement (PPA), which was signed in 2017.

In a statement, the company expressed confidence that the process would lead to an amicable and mutually beneficial solution.

Both Adani Power and the Bangladesh authorities have shown willingness to engage constructively and resolve the matter through dialogue and established legal frameworks.

Adani Power operates the 1,600-megawatt Godda power plant in eastern India, a major project that supplies nearly one-tenth of Bangladesh’s electricity needs.

Since the plant became operational, it has significantly strengthened Bangladesh’s energy security, providing a stable and uninterrupted power supply that supports the country’s growing industrial and residential demand.

The plant’s advanced infrastructure, efficient operations, and commitment to sustainable power generation have been instrumental in deepening energy cooperation between India and Bangladesh.

Adani Power’s efforts align with India’s broader regional goal of fostering cross-border energy partnerships that drive shared economic growth and stability.

The company recently reported that Bangladesh’s outstanding payments have been reduced to the equivalent of just 15 days’ worth of tariff payments, compared to nearly $2 billion earlier this year.

This substantial progress underscores the positive momentum between the two sides and the shared goal of resolving all outstanding issues swiftly.

Adani Power reaffirmed its commitment to the terms of the power purchase agreement and its dedication to providing high-quality, reliable, and cost-effective electricity.

The company stated that it remains focused on supporting Bangladesh’s energy transition and ensuring long-term sustainability in the power sector.

Industry analysts have viewed the arbitration move as a responsible step that promotes confidence in international business practices.

It also demonstrates Adani Power’s adherence to contractual integrity and its willingness to resolve issues through lawful and transparent channels.

The ongoing dialogue between India and Bangladesh on energy cooperation continues to evolve positively. Both nations recognize the importance of regional energy interdependence, not only for economic growth but also for strengthening diplomatic and strategic ties.

Adani Power’s leadership in the energy sector has helped expand India’s role as a reliable electricity exporter to neighboring countries. Its projects in Bangladesh stand as a model for cross-border energy collaboration in South Asia.

Looking ahead, the company remains optimistic about reaching a swift resolution that reinforces mutual trust and operational stability.

The arbitration process, once completed, is expected to further enhance long-term cooperation and efficiency in energy trade between the two nations.

With continued focus on innovation, transparency, and collaboration, Adani Power remains dedicated to contributing to sustainable energy growth across South Asia—powering progress, one partnership at a time.