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China’s Dam Near India: A Water Crisis Looms?

Published On: July 22, 2025
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China has begun construction on a massive $170 billion hydropower project on the Yarlung Zangbo river, raising significant concerns in India, which fears potential downstream impacts and is now proposing its own large storage dam in response.

China’s Mega-Dam Project Takes Shape

China’s Premier Li Qiang recently announced the official launch of a colossal hydropower project on the Yarlung Zangbo river, just before it flows into India as the Brahmaputra. This ambitious undertaking, with an investment of nearly $170 billion, marks China’s largest infrastructure project since the Three Gorges Dam.

The project involves five cascade hydropower stations spanning 50 kilometers, tapping into a 2,000-meter drop in elevation. With a planned capacity of 60 GW, it will be roughly three times the size of the Three Gorges Dam. Chinese markets reacted positively to the news, seeing it as a major boost for the domestic economy.

India’s Alarming Concerns

Across the border in Arunachal Pradesh, the news has sparked alarm. Indian officials worry about the potential “water bomb” effect if China were to suddenly release water from the dam. This could devastate the Siang region, impacting the Adi tribe and other local communities, destroying property, land, and lives.

While only about 30 percent of the Brahmaputra’s water originates in China, the immediate impact of this dam is expected to be most acutely felt in Arunachal Pradesh. Beyond the risk of flooding, the Chinese project could also disrupt water flow to India’s proposed hydropower ventures downstream.

The Northeast region holds nearly half of India’s vast hydropower potential, much of it still untapped. Arunachal Pradesh alone accounts for about 50 GW of this estimated potential, making the Chinese dam a direct threat to India’s energy ambitions.

India’s Strategic Counter-Move

To mitigate the risks posed by China’s upstream development, India has proposed the 11.2 GW Upper Siang Multipurpose Project. This large storage-based dam in the Siang district is intended to act as a crucial strategic buffer, regulating water flow and safeguarding downstream populations and infrastructure.

However, progress on India’s counter-dam has been slow. Despite the Ministry of Jal Shakti tasking NHPC Ltd with the project three years ago, vital investigations have been stalled due to local opposition. Union Jal Shakti Minister CR Patil affirmed India’s preparedness, stating that “work will start.”

An NHPC official highlighted that the Upper Siang project could effectively “mitigate adverse impact of both acts of water diversion and artificial floods” from the Chinese side. Once completed, this project would become India’s largest hydropower station, a significant move in safeguarding its strategic interests.

  • China’s new $170 billion dam on the Yarlung Zangbo (Brahmaputra) river is its largest infrastructure project since the Three Gorges Dam.
  • India fears potential “water bomb” impacts and disruption to its own hydropower projects in Arunachal Pradesh.
  • India plans the Upper Siang Multipurpose Project as a strategic buffer, though progress has been slow due to local opposition.

The ongoing development of these massive water projects highlights the critical geopolitical and environmental stakes involved in managing shared river resources.

China has begun construction on a massive $170 billion hydropower project on the Yarlung Zangbo river, raising significant concerns in India, which fears potential downstream impacts and is now proposing its own large storage dam in response.

China’s Mega-Dam Project Takes Shape

China’s Premier Li Qiang recently announced the official launch of a colossal hydropower project on the Yarlung Zangbo river, just before it flows into India as the Brahmaputra. This ambitious undertaking, with an investment of nearly $170 billion, marks China’s largest infrastructure project since the Three Gorges Dam.

The project involves five cascade hydropower stations spanning 50 kilometers, tapping into a 2,000-meter drop in elevation. With a planned capacity of 60 GW, it will be roughly three times the size of the Three Gorges Dam. Chinese markets reacted positively to the news, seeing it as a major boost for the domestic economy.

India’s Alarming Concerns

Across the border in Arunachal Pradesh, the news has sparked alarm. Indian officials worry about the potential “water bomb” effect if China were to suddenly release water from the dam. This could devastate the Siang region, impacting the Adi tribe and other local communities, destroying property, land, and lives.

While only about 30 percent of the Brahmaputra’s water originates in China, the immediate impact of this dam is expected to be most acutely felt in Arunachal Pradesh. Beyond the risk of flooding, the Chinese project could also disrupt water flow to India’s proposed hydropower ventures downstream.

The Northeast region holds nearly half of India’s vast hydropower potential, much of it still untapped. Arunachal Pradesh alone accounts for about 50 GW of this estimated potential, making the Chinese dam a direct threat to India’s energy ambitions.

India’s Strategic Counter-Move

To mitigate the risks posed by China’s upstream development, India has proposed the 11.2 GW Upper Siang Multipurpose Project. This large storage-based dam in the Siang district is intended to act as a crucial strategic buffer, regulating water flow and safeguarding downstream populations and infrastructure.

However, progress on India’s counter-dam has been slow. Despite the Ministry of Jal Shakti tasking NHPC Ltd with the project three years ago, vital investigations have been stalled due to local opposition. Union Jal Shakti Minister CR Patil affirmed India’s preparedness, stating that “work will start.”

An NHPC official highlighted that the Upper Siang project could effectively “mitigate adverse impact of both acts of water diversion and artificial floods” from the Chinese side. Once completed, this project would become India’s largest hydropower station, a significant move in safeguarding its strategic interests.

  • China’s new $170 billion dam on the Yarlung Zangbo (Brahmaputra) river is its largest infrastructure project since the Three Gorges Dam.
  • India fears potential “water bomb” impacts and disruption to its own hydropower projects in Arunachal Pradesh.
  • India plans the Upper Siang Multipurpose Project as a strategic buffer, though progress has been slow due to local opposition.

The ongoing development of these massive water projects highlights the critical geopolitical and environmental stakes involved in managing shared river resources.

Anshu Kaushik

Anshu Kaushik is an automotive analyst and business writer with over 8 years of experience covering market trends, consumer insights, and product innovations. With a background in finance and a lifelong passion for engineering, he bridges technical depth and economic perspective in his coverage. His work has been cited in business journals and product strategy briefs. Anshu’s insights help readers make confident, informed decisions in fast-moving sectors like cars and commerce. Find him on LinkedIn.

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