Power Plant Construction
India is set to fast-track the construction of 12 hydropower stations in Arunachal Pradesh, allocating up to 7.5 billion rupees ($89.85 million) for each project, sources revealed from the federal finance ministry.
This initiative, part of a broader effort to bolster infrastructure in the northeastern Himalayan region, aims to enhance state equity participation, which facilitates regulatory approvals and local negotiations.
Expected to be formally announced in the upcoming 2024/2025 federal budget, these plans underscore India’s strategic development push in a region claimed by China.
The projects, originally awarded to state-run firms NHPC, SJVNL, and NEEPCO last August, aim to collectively add 11.5 gigawatts of capacity with an estimated total investment of $11 billion.
Despite previous attempts by private sector firms, these hydropower projects have languished, prompting India’s renewed focus amid concerns over Chinese infrastructure plans in the Brahmaputra River basin.
China’s activities in the region have raised alarms in India, fearing potential ecological impacts such as flash floods and water scarcity.
The geopolitical backdrop includes unresolved border disputes and historical tensions, notably the 1962 war over the contested territory of Arunachal Pradesh, known as Southern Tibet in China’s claims.
Both nations have bolstered border infrastructure since the deadly clash in 2020, underscoring heightened strategic competition.
Recent diplomatic engagements between India and China, including talks between Foreign Minister Subrahmanyam Jaishankar and his Chinese counterpart Wang Yi, have aimed to defuse tensions and foster dialogue on border issues.
However, India’s infrastructure push in Arunachal Pradesh signals a proactive stance amidst continuing strategic concerns.
Responses from the Indian finance and power ministries, as well as China’s foreign ministry, are awaited as these developments unfold against a backdrop of regional competition and diplomatic maneuvering.
