India races to build power plants in region claimed by China, which could add to tensions
- Delhi plans to build projects in Arunachal Pradesh, which it says is an integral part of India, but China claims it is a part of Southern Tibet
The federal finance ministry under Nirmala Sitharaman recently approved up to 7.5 billion rupees (US$89.85 million) in financial help to each hydropower project in the northeastern region, the sources said.
Under the scheme, about 90 billion rupees is likely to be allotted for the 12 hydropower projects in Arunachal Pradesh, said the sources, who have direct knowledge of the matter.
The scheme is likely to support northeastern states and help them finance equity holdings in the projects they host. Having state governments on board generally helps in expediting regulatory clearances, locals rehabilitation and negotiations on sharing electricity with the host state.
The Indian finance and power ministries and China’s foreign ministry did not immediately respond to requests for comment.