- India will fund 12 hydroelectric power stations in Arunachal Pradesh to boost regional energy infrastructure and economic growth.
- The project heightens tensions with China, which claims Arunachal Pradesh as part of southern Tibet and has concerns about India’s infrastructure plans.
- Following failed private sector attempts, NHPC Ltd, NEEPCO, and SJVN Ltd will construct the plants as India seeks to diversify its energy mix.
India has announced a $1 billion investment to build 12 hydroelectric power stations in Arunachal Pradesh. The Ministry of Finance, under Finance Minister Nirmala Sitharaman, approved this initiative to boost the region’s energy infrastructure and stimulate local economic growth.
Arunachal Pradesh, located in the northeastern Himalayas, sits at the centre of a territorial dispute with China. Beijing claims the area as part of southern Tibet. India’s investment in hydroelectric power aims to increase energy capacity and strengthen its presence in this contested region.
The planned projects will have a total capacity of 11.5 gigawatts. Federal subsidies of up to 7.5 billion rupees per project will finance the initiative, and the Indian government will provide approximately 90 billion rupees.
Local governments must secure regulatory approvals, manage the resettlement of affected populations, and negotiate electricity-sharing agreements. Their involvement should accelerate the projects and address India’s growing energy needs.
China has voiced concerns about India’s infrastructure plans in Arunachal Pradesh. The Chinese government has previously opposed Indian projects in the region. Beijing also builds dams on the Brahmaputra River, known as the Yarlung Tsangpo in China. India fears these dams could cause flash floods or water shortages downstream.
The two countries share a 2,500 km long border that remains largely undefined. They have a history of tensions, including deadly clashes in the western Himalayas in 2020. These disputes highlight the fragile state of bilateral relations.
State-owned Indian companies NHPC Ltd, North Eastern Electric Power Corporation Ltd (NEEPCO), and SJVN Ltd will construct the new hydroelectric plants. The companies won the contracts after private sector attempts failed to deliver results.
India has built less than 15 gigawatts of hydroelectric capacity over the past 20 years. The new projects represent India’s effort to diversify its energy mix, which relies heavily on coal and renewable sources.
Diplomatic efforts continue to address border issues. Recent meetings between Indian Foreign Minister Subrahmanyam Jaishankar and Chinese Foreign Minister Wang Yi show a willingness to engage in dialogue. However, the future of the hydroelectric projects will depend on the evolution of Sino-Indian relations.
In summary, India’s $1 billion investment in hydroelectric power stations in Arunachal Pradesh represents a strategic move that combines energy development with geopolitical considerations. As the projects progress, the balance of power in Asia will reflect the interplay of energy strategy and regional dynamics.