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Home»Business»China breaks ground on $170 billion dam near Arunachal—why India is concerned, and what it plans to do | Business News
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China breaks ground on $170 billion dam near Arunachal—why India is concerned, and what it plans to do | Business News

July 22, 2025No Comments4 Mins Read
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With a planned investment of nearly $170 billion, it is set to be China’s largest infrastructure project since the Three Gorges Dam
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China’s official announcement of the beginning of development on an enormous hydropower mission on the Yarlung Zangbo – simply earlier than the river bends into Arunachal Pradesh because the Brahmaputra – marks a pivotal second for each India’s strategic pursuits and China’s financial targets.

With a deliberate funding of practically $170 billion, it’s set to be China’s largest infrastructure mission for the reason that Three Gorges Dam, and a serious stimulus for the home economic system.

However throughout the border in Arunachal Pradesh, the mission has raised alarm over potential downstream impacts, with fears of the Siang area being susceptible to a “water bomb”. India, in response, has proposed a big storage mission to counter the Chinese language dam – however progress has been gradual.

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Beijing breaks floor, markets surge

The Chinese language Premier Li Qiang on July 19 introduced the launch of development and the formation of a brand new entity – China Yajiang Group Co Ltd – to construct and function the hydropower mission, based on state-run Xinhua.

The mission will comprise 5 cascade hydropower stations unfold throughout a 50-kilometre stretch of the river that drops 2,000 metres, providing huge hydropower potential. With a deliberate capability of 60 GW, it will likely be roughly 3 times the scale of the Three Gorges Dam. Whereas cascade tasks usually embody storage to control circulation between stations, the extent of deliberate storage has not been revealed.

Chinese language markets responded positively to the announcement on Monday, with shares of main development and gear companies surging. Specialists see the mission as a serious stimulus for the home economic system.

‘Whole Siang belt can be destroyed’

Whereas the storage capability of the Chinese language mission is just not recognized – a key think about assessing China’s potential to control water circulation into India – considerations are mounting in Arunachal Pradesh. Earlier this month, Chief Minister Pema Khandu warned that the dam is the largest challenge dealing with India, second solely to the “navy risk”, and could possibly be used as a “water bomb”.

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“Suppose the dam is constructed and so they out of the blue launch water, our total Siang belt can be destroyed. Specifically, the Adi tribe and related teams… would see all their property, land, and particularly human life, undergo devastating results,” Khandu informed PTI on July 9.

Whereas round 30 per cent of the Brahmaputra’s waters originate in China, the bulk comes from rainfall inside India’s catchment areas. Because of this, the Chinese language dam’s instant influence is predicted to be felt most in Arunachal Pradesh – significantly within the Siang area.

Along with flooding considerations, the Chinese language dam might additionally disrupt water circulation to proposed downstream hydro tasks. The Northeast holds practically half of India’s 133 GW hydropower potential, over 80 per cent of which stays untapped. Of the 60 GW estimated potential, about 50 GW lies in Arunachal Pradesh alone.

India races to construct buffer dam

To counter China’s upstream improvement, India has proposed the 11.2 GW Higher Siang Multipurpose Undertaking – an enormous storage-based dam within the Siang district. The mission is predicted to behave as a strategic buffer to control water circulation and defend downstream populations and infrastructure.

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Nevertheless, progress has been gradual, The Indian Categorical had earlier reported. Three years after the Ministry of Jal Shakti tasked NHPC Ltd with getting ready a pre-feasibility report, important investigations stay stalled as a result of native opposition.

In response to a query on delays at an Thought Trade earlier this month, Union Jal Shakti Minister CR Patil stated, “China can do no matter it needs, we’re absolutely ready. PM Modi is sort of severe about it. Work will begin.”

An NHPC official informed The Indian Categorical in June that the mission can act as “a regulating scheme to mitigate hostile influence of each acts of water diversion and synthetic floods by the upstream Chinese language improvement”. As soon as full, the Higher Siang mission can be India’s largest hydropower station.



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