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Home » India Plans $77B Hydropower Expansion as Strategic Buffer to China’s Upstream Dams
ESG & Sustainability

India Plans $77B Hydropower Expansion as Strategic Buffer to China’s Upstream Dams

omc_adminBy omc_adminOctober 13, 2025No Comments4 Mins Read
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• India’s Central Electricity Authority unveils 6.4 trillion rupee ($77 billion) plan to transmit 76 GW of hydro power from the Brahmaputra basin by 2047.
• The basin, spanning eight northeastern states, contains more than 80% of India’s untapped hydro potential.
• The plan comes amid rising tensions over China’s construction of a mega dam on the Yarlung Zangbo, upstream of India’s Arunachal Pradesh.

Strategic Energy Move Along a Fragile Border

India has outlined an ambitious $77 billion hydropower transmission plan to harness the Brahmaputra River’s vast energy potential and bolster its energy security in a geopolitically sensitive region.

The Central Electricity Authority (CEA) said the plan aims to transmit more than 76 gigawatts (GW) of hydroelectric capacity from India’s northeast by 2047. The projects will span 12 sub-basins of the Brahmaputra River, which flows from Tibet through India into Bangladesh — a waterway that has become increasingly strategic as China accelerates upstream dam construction.

The CEA’s report identified 208 large hydro projects with a combined 64.9 GW of potential capacity, alongside 11.1 GW from pumped-storage facilities designed to stabilize grid fluctuations from intermittent renewables.

Arunachal Pradesh, bordering China, accounts for the lion’s share of the potential — 52.2 GW — underscoring both the opportunity and the vulnerability of India’s hydropower ambitions.

Infrastructure and Investment Phasing

The CEA outlined a two-phase roadmap: Phase I, running to 2035, will require 1.91 trillion rupees ($23 billion), while Phase II, through 2047, will draw 4.52 trillion rupees ($54 billion).

Key state-run entities — including NHPC, NEEPCO, and SJVN — will anchor implementation, with several projects already under construction or awaiting clearances. Private participation is also expected to rise as India builds long-distance transmission corridors linking the northeast to major demand centers across the country.

The investment aligns with India’s target of achieving 500 GW of non-fossil power generation by 2030 and reaching net-zero emissions by 2070. Hydropower, though slower to develop than solar or wind, offers round-the-clock clean electricity that supports grid stability and storage integration.

CEA officials said the Brahmaputra plan would serve as a “green backbone” of India’s future energy mix — reducing fossil dependence while providing a strategic counterweight to upstream developments in Tibet.

The China Factor

Beijing’s construction of a super-dam on the Yarlung Zangbo, the upper stretch of the Brahmaputra, has heightened New Delhi’s concerns over transboundary water security. Hydrologists warn that the Chinese project could reduce India’s dry-season river flows by as much as 85%, potentially affecting agriculture and power generation in Assam and Arunachal Pradesh.

India has repeatedly urged greater transparency from China on dam operations and river flow data. However, with limited formal water-sharing arrangements between the two nations, India’s move to fast-track its own hydro infrastructure is as much about energy transition as it is about geopolitical resilience.

“The northeast’s rivers are not just a renewable energy asset — they are a national security priority,” a senior power ministry official said on condition of anonymity.

RELATED ARTICLE: India’s Data Centre Industry: Powering Growth Sustainably?

Balancing Environment and Development

While the plan promises economic growth and cleaner energy, it also raises questions about ecological and social impacts in the fragile Himalayan region. Large-scale hydro development could alter river ecosystems and displace local communities, particularly in biodiversity-rich Arunachal Pradesh.

Environmental groups have called for cumulative impact assessments and stricter safeguards before construction begins. The CEA report acknowledged these risks but emphasized that pumped-storage facilities and run-of-river projects would limit large-scale inundation compared to traditional dams.

India’s power planners argue that failing to develop domestic hydro potential could leave the country exposed to greater environmental and geopolitical risks, especially as climate change intensifies hydrological volatility in the eastern Himalayas.

National and Regional Implications

The Brahmaputra basin plan strengthens India’s long-term energy transition by adding firm renewable capacity that complements solar and wind expansion. It also enhances grid stability at a time when India’s electricity demand is growing faster than any other major economy.

Regionally, the development could reshape power trade within South Asia. Bangladesh, which relies on Brahmaputra flows downstream, may benefit from cross-border power imports once the transmission infrastructure matures.

For investors, the $77 billion plan marks one of the largest hydroelectric infrastructure undertakings globally — blending clean-energy finance, water diplomacy, and regional security into a single national strategy.

India’s effort to turn the Brahmaputra into both an energy corridor and a geopolitical safeguard reflects a broader truth of 21st-century climate politics: hydropower is no longer just about electricity, but about sovereignty, stability, and long-term resilience.

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