Arunachal's mega-dam project, why the rupee falls, and 9 killed in Bijapur
Jan 7, 2025
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Sukrita Baruah, a reporter with The Indian Express specializing in Arunachal Pradesh, discusses the contentious mega-dam project on the Siang River, examining local resistance grounded in fears of land loss and governmental distrust. She also highlights the strategic implications of the project amid Chinese developments. Additionally, the conversation shifts to the Indian rupee's decline, addressing inflation and trade challenges, before touching on the tragic Maoist attack in Chhattisgarh, which left eight security personnel dead.
The proposed Siang Upper Multipurpose Project in Arunachal Pradesh aims to be India’s largest hydropower dam, but faces strong local opposition due to fears of flooding and loss of agricultural land.
The Indian rupee's continued depreciation against the dollar is driven by inflation, weak exports, and trade deficits, creating significant economic challenges for the country.
Deep dives
India's Largest Hydropower Project and Strategic Concerns
The proposed Siang Upper Multipurpose Project in Arunachal Pradesh aims to construct India's largest hydropower project with an anticipated capacity of 11,000 megawatts. This project is positioned as a strategic initiative, primarily to counter China's construction of a massive dam on the Brahmaputra River in Tibet, rather than solely for hydropower generation. Concerns among locals regarding the project include the potential for significant flooding if China releases water from its dam, referred to ominously by officials as a 'water bomb,' which could devastate downstream areas in India and Bangladesh. The government's message of urgency and strategic necessity, however, struggles to resonate with local communities who remain skeptical of the claims and are concerned about the loss of their land and livelihood.
Local Resistance and Livelihood Threats
Opposition to the Siang dam project is spearheaded by local farmers, particularly the Siang Indigenous Farmers Forum, who fear the inundation of 13 villages and the detrimental impact on their agricultural land. This area is crucial for their livelihoods, as the fertile land along the Siang River supports the cultivation of crops like millet, paddy, and oranges. The longstanding anti-dam sentiment among residents is fueled by distrust of government promises regarding compensation and a lack of effective communication about the project's implications. Even those villagers who might be open to discussing compensation are wary, demanding formal assurances rather than verbal commitments from government officials.
Factors Contributing to the Fall of the Indian Rupee
The Indian rupee has been depreciating against the US dollar, crossing the 85 mark, reflecting a rising demand for dollars and India's struggles with exports. Various factors such as inflation, weak export performance, and a trade deficit with the US contribute to this decline, where more dollars are needed to purchase foreign goods and services. As inflation erodes the rupee's value, it becomes less attractive for investors, leading to capital outflows and further exacerbating the currency's weakness. Additionally, potential trade actions, such as tariffs imposed by the US, could negatively impact the rupee's value and the broader economic landscape in India.
First, The Indian Express’ Sukrita Baruah explains why India is planning to construct the country’s largest hydropower dam in Arunachal Pradesh and why the locals are opposing it.
Next, The Indian Express’ Udit Misra discusses the reasons behind the rupee’s fall against the dollar and the factors influencing the exchange rate (13:42).
Finally, The Indian Express’ Jayprakash Naidu provides updates on the latest Maoist attack in Chhattisgarh’s Bijapur district, which claimed the lives of eight security personnel (27:12).
Hosted, written, and produced by Shashank Bhargava Edited and mixed by Suresh Pawar
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