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Why is India worried about China building the world's largest hydropower dam in Tibet?

Why is India worried about China building the world’s largest hydropower dam in Tibet?

Posted on 22 July 2025 By jobuzo

A controversial mega dam project by China, which has begun construction in Tibet, could end up becoming the world’s largest source of hydroelectric power. Chinese Premier Li Qiang called it the “project of the century” on Saturday at the ceremony marking the beginning of the construction.

The massive structure is being built over the Yarlung Tsangpo River, which is around 2,900 kilometres long. It is also known as the Brahmaputra in India and the Jamuna in Bangladesh and begins at the foothills of the Himalayas in Tibet. The project has received criticism from groups and environmentalists in the Bangladesh, India and Tibet.

Why is China building the dam?

The estimated cost of the project is at least around $170 billion, according to the official Xinhua news agency. The project was first announced in 2020 as part of China’s 14th Five-Year Plan. It is known to be China’s most ambitious hydropower project after the Three Gorges Dam on the Yangtze River, and the construction sent the stock prices soaring on Monday.      

According to state media, the project is for the lower reaches of the river and would consist of five cascade hydropower stations and would produce an estimated 300 million megawatts of electricity annually. The dam takes advantage of the river falling over 2 km within 50 km as it goes through the deepest canyon on earth, in a U-shaped bend. 

The project is overseen by the state-owned China Yajiang Group. Apart from economic goals, the project is also part of the country’s aims to become carbon neutral. The project is expected to be functioning by 2030.

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The premier also said that special emphasis must be placed on ecological conservation to prevent environmental damage on Saturday.

The concerns from the neighbours

India and Bangladesh have criticised the project and voiced concerns that the water would be diverted away from the countries.  The river flows from Tibet to Arunachal Pradesh in India, where it becomes the Brahmaputra, and then it flows into Bangladesh, becoming the Yamuna River. The construction of the dam could affect millions who live downstream. 

The area is known to be sensitive due to its proximity to the border and its location, which sits on an active tectonic boundary. 

The fear is of China weaponising the water by blocking ot diverting it. India had raised its concerns formally with Beijing over bilateral meetings. NGOs have also warned of the risks the dam poses, which affects one of the most diverse environments in the Tibetan Plateau.

Beijing has said that the dam will meet the power demand in Tibet and the rest of China without affecting the downstream water supply and the environment. The operations are set to begin in 2030. 

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The chief minister of Arunachal Pradesh, Pea Khandu, said earlier this year that the massive dam, built barely 50 km from the border, could dry out about 80 per cent of the river. Early this month, he called the dam a “ticking water bomb” and said that it endangers the local tribes’ livelihoods while speaking to PTI. 

Meanwhile, India has also been building its own hydropower project on the Brahmaputra River in Arunachal Pradesh as part of its regional infrastructure development.

 In January, India’s Foreign Ministry raised concerns with China, saying it will “monitor and take necessary measures to protect our interests.”

The ministry stressed that China has been “urged to ensure that the interests of the downstream states of the Brahmaputra are not harmed by activities in upstream areas.”

According to an older report by Australian-based think tank Lowy Institute, “control over these rivers (in the Tibetan Plateau) effectively gives China a chokehold on India’s economy”. 

Chinese authorities have not given an estimate of how many people will be displaced due to the project. The government has rejected the criticism and says that the project will stimulate jobs and increase domestic energy supplies. 

Why is India worried about China building the world’s largest hydropower dam in Tibet?


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