logo
China breaks ground on $170 billion dam near Arunachal—why India is concerned, and what it plans to do

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

Indian Express22-07-2025
China's official announcement of the start of construction on a massive hydropower project on the Yarlung Zangbo – just before the river bends into Arunachal Pradesh as the Brahmaputra – marks a pivotal moment for both India's strategic interests and China's economic goals.
With a planned investment of nearly $170 billion, it is set to be China's largest infrastructure project since the Three Gorges Dam, and a major stimulus for the domestic economy.
But across the border in Arunachal Pradesh, the project has raised alarm over potential downstream impacts, with fears of the Siang region being vulnerable to a 'water bomb'. India, in response, has proposed a large storage project to counter the Chinese dam – but progress has been slow.
The Chinese Premier Li Qiang on July 19 announced the launch of construction and the formation of a new entity – China Yajiang Group Co Ltd – to build and operate the hydropower project, according to state-run Xinhua.
The project will comprise five cascade hydropower stations spread across a 50-kilometre stretch of the river that drops 2,000 metres, offering vast hydropower potential. With a planned capacity of 60 GW, it will be roughly three times the size of the Three Gorges Dam. While cascade projects typically include storage to regulate flow between stations, the extent of planned storage has not been revealed.
Chinese markets responded positively to the announcement on Monday, with shares of major construction and equipment firms surging. Experts see the project as a major stimulus for the domestic economy.
While the storage capacity of the Chinese project is not known – a key factor in assessing China's ability to regulate water flow into India – concerns are mounting in Arunachal Pradesh. Earlier this month, Chief Minister Pema Khandu warned that the dam is the biggest issue facing India, second only to the 'military threat', and could be used as a 'water bomb'.
'Suppose the dam is built and they suddenly release water, our entire Siang belt would be destroyed. In particular, the Adi tribe and similar groups… would see all their property, land, and especially human life, suffer devastating effects,' Khandu told PTI on July 9.
While around 30 per cent of the Brahmaputra's waters originate in China, the majority comes from rainfall within India's catchment areas. As a result, the Chinese dam's immediate impact is expected to be felt most in Arunachal Pradesh – particularly in the Siang region.
In addition to flooding concerns, the Chinese dam could also disrupt water flow to proposed downstream hydro projects. The Northeast holds nearly half of India's 133 GW hydropower potential, over 80 per cent of which remains untapped. Of the 60 GW estimated potential, about 50 GW lies in Arunachal Pradesh alone.
To counter China's upstream development, India has proposed the 11.2 GW Upper Siang Multipurpose Project – a massive storage-based dam in the Siang district. The project is expected to act as a strategic buffer to regulate water flow and protect downstream populations and infrastructure.
However, progress has been slow, The Indian Express had earlier reported. Three years after the Ministry of Jal Shakti tasked NHPC Ltd with preparing a pre-feasibility report, vital investigations remain stalled due to local opposition.
In response to a question on delays at an Idea Exchange earlier this month, Union Jal Shakti Minister CR Patil said, 'China can do whatever it wants, we are fully prepared. PM Modi is quite serious about it. Work will start.'
An NHPC official told The Indian Express in June that the project can act as 'a regulating scheme to mitigate adverse impact of both acts of water diversion and artificial floods by the upstream Chinese development'. Once complete, the Upper Siang project would be India's largest hydropower station.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Stellantis warns of $1.7 billion US tariff impact in 2025
Stellantis warns of $1.7 billion US tariff impact in 2025

Time of India

time29 minutes ago

  • Time of India

Stellantis warns of $1.7 billion US tariff impact in 2025

Stellantis said on Tuesday it faced greater headwinds this year including a 1.5-billion-euro impact from US tariffs for 2025, with operating income in the second half set to be in the low-single digits following a tough first half. Forecasts for the second half were based on tariff rules effective Tuesday, and the overall 2025 tariff impact included 300 million euros incurred in the first half, the automaker said. The 1.5-billion-euro ($1.73 billion) tariff impact was at the higher end of a forecast range of 1.0-1.5 billion euros the company provided last week when it released preliminary figures for the first half, which were broadly confirmed on Tuesday. Stellantis' other challenges this year include foreign exchange fluctuations, while greater Chinese competition and potential fines linked to EU carbon regulation loom in the background. Shares fell 2.3 per cent in morning trading, the biggest decliner among blue chip stocks in Milan, after earlier sinking as much as 4.8 per cent . Analysts at Jefferies said Stellantis' second-half guidance was vague with scant details, while those at Bernstein said in a note, "The lack of precision undermined the stock." Stellantis forecast higher net revenue and improved industrial free cash flow in the second half compared with the first, when it burned cash for 3 billion euros. "Our new leadership team, while realistic about the challenges, will continue making the tough decisions needed to re-establish profitable growth and significantly improved results," new CEO Antonio Filosa said in a statement. The company veteran was appointed in May after former boss Carlos Tavares was ousted in December following a disastrous 2024 performance in the crucial US market. Filosa, who will reign over a portfolio of 15 brands globally, will have to revamp product ranges and regain market share and investor confidence. He was set to make his first official appearance as CEO in a results call later in the day. Challenges ahead Stellantis in April withdrew its guidance for a moderate recovery this year after a profit drop in 2024, citing an evolving trade scenario and uncertain impact of US tariffs. On Sunday, the United States and the European Union struck a framework trade agreement, imposing a 15 per cent US import tariff on most EU goods - half the threatened rate. Stellantis, however, is mostly exposed to 25 per cent tariffs US President Donald Trump imposed on Mexico and Canada, on top of an existing 2.5 per cent tariff, with more than 40 per cent of the 1.2 million vehicles it sold last year in the US being imports from these two countries. For the first half, the maker of car brands including Jeep, Fiat, Peugeot and Ram posted a 13 per cent drop in net revenue to 74.3 billion euros, an adjusted operating income margin of 0.7 per cent , and a net loss of 2.3 billion euros. Net revenue in North America, historically Stellantis' largest and most profitable market, was just over 28 billion euros in the first half and below Europe's 29.2 billion euros in the same period.

China's Shanghai Composite index gains 0.33%
China's Shanghai Composite index gains 0.33%

Business Standard

time42 minutes ago

  • Business Standard

China's Shanghai Composite index gains 0.33%

Asian stocks ended Tuesday's session on a mixed note as investors looked past the U.S.-EU trade deal and awaited the outcome of ongoing U.S.-China talks in Stockholm. As the August 1 deadline nears, U.S. President Donald Trump said on Monday that most trading partners that do not negotiate separate trade deals would soon face tariffs of 15 percent to 20 percent on their exports to the United States and that some 200 countries would be notified soon of their new "world tariff" rate. Investors also braced for big tech earnings, key U.S. economic indicators and upcoming Fed and BoJ rate decisions. The dollar gained strength, and gold was steady below $3,315 per ounce while crude oil futures steadied at around 10-day highs as Trump shortened the deadline for Russia oil sanctions. China's Shanghai Composite index rose 0.33 percent to 3,609.71, reversing an early slide after Trump said he may visit China at Chinese President Xi Jinping's invitation, which Trump said had been extended.

ET Make in India SME Regional Summits: Racing past China while Trump's tariffs clear the path
ET Make in India SME Regional Summits: Racing past China while Trump's tariffs clear the path

Time of India

timean hour ago

  • Time of India

ET Make in India SME Regional Summits: Racing past China while Trump's tariffs clear the path

Live Events The timing couldn't be better for Surat's industrial renaissance. As geopolitical tensions reshape global supply chains and AI overhauls manufacturing, this city's diverse MSME ecosystem is positioning itself to capture opportunities worth tens of billions of transformation is most visible in Surat's diamond district, where Jayanti Savaliya of the Gem & Jewellery Export Promotion Council (GJEPC) oversees an industry that has evolved from manual processes to AI-driven precision in just two decades."Changes that took a decade earlier are now happening in two years," Savaliya shared, describing how robotic machines now handle diamond sorting while AI reduces jewellery design rendering from days to minutes. Savaliya was part of the panel 'From looms to labs: How Surat's MSMEs can lead India's next wave of industrial innovation'. The discussion was one of several insightful conversations at the ET Make in India SME Regional Summit in Surat, which took place on July 18. The summit had IDBI as banking and lending partner and Canon as tech other panellists were: Ashish Gujrati, Managing Director, Aditya Textile Solutions and Past President, SGCCI; Bikash Chandra Naik, Zonal Head, NSIC; and Prashant Patel, Past President of FISME and Director, RK Synthesis former President Trump's trade policies have become Surat's secret weapon. His tariffs hit China with 40% duties on jewellery while India faces just 16-26%, creating what Savaliya called "a huge opportunity" as manufacturing shifts from Chinese factories to Surat's 600 new jewellery tariff advantage extends beyond diamonds. Ashish Gujrati pointed to recent developments in Bangladesh, where a 35% tariff has global garment buyers scrambling for alternatives. Surat, which produces 65% of India's man-made fiber, stands ready to fill the numbers are staggering: Surat's garment industry is growing 25% annually, and the city has a $30 billion export opportunity in man-made fiber textiles alone. With global MMF exports projected to grow from $7.7 billion to over $73 billion, Surat's comprehensive ecosystem — spanning the entire value chain within 45km — positions it as a natural city's MSME transformation runs deeper than favourable trade winds. Prashant Patel, described a fundamental shift in business philosophy. "Historically, Indian companies avoided R&D, opting for copy-paste models," he noted at the ET SME Summit panel in Surat. "But since Covid-19, this mindset has changed."Today, Surat companies invest in developing new technologies, not just new products. This includes process optimisation that reduces raw material usage and addresses pollution concerns, which are critical factors for accessing international markets increasingly focused on government infrastructure supporting this innovation has evolved too. Bikash Chandra Naik spoke about NSIC's Single Point Registration Scheme, which reserves 25% of government procurement for small competitive edge increasingly lies in its skilled workforce. Despite China's scale and cost advantages, nine out of 10 diamonds globally are still processed in Surat, a testament to the city's unmatched expertise in precision advantage is expanding beyond traditional sectors. While Jaipur currently dominates gemstone processing, Savaliya underlined the untapped potential for Surat to leverage its existing infrastructure and skilled labour in this adjacent obstacles remain. Land costs in Surat now exceed those in competing industrial centers like Bharuch and Vapi. Skilled workers command premium salaries that stretch MSME budgets, while the lack of shared R&D infrastructure forces companies to either invest crores of rupees in equipment or relocate to areas with better common challenges haven't dampened ambitions. With the PM MITRA textile park awaiting implementation and India's global textile trade share poised for recovery from its current 2.94%, Surat's MSME ecosystem appears ready to capitalise on a convergence of technological advancement and geopolitical the panel discussion at the ET Make in India SME Regional Summit - Surat revealed, the city's transformation from a traditional manufacturing hub to an innovation-driven ecosystem reflects a broader shift in Indian industry, one where MSMEs aren't just adapting to global changes, but actively shaping a world where supply chains are being redrawn and AI is redefining manufacturing, Surat's diverse industrial base and rapid technology adoption may well position it to lead India's next wave of industrial innovation. The ET Make in India SME Regional Summits , ET MSME Day, and ET MSME Awards are flagship initiatives to celebrate the versatility and success of India's MSME sector. If you lead or are part of a micro, small, or medium enterprise, register for the ET MSME Awards 2025 before August 31, 2025.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store