China on Friday defended its plan to build the world's largest dam on the Brahmaputra River in Tibet saying that the project will not affect riparian states and safety issues have been addressed through decades of studies.

The project has stoked concerns about displacement and environmental impact downstream in India and Bangladesh.

China is pressing ahead with plans to construct a mega-dam near its contested border with India, a colossal undertaking that could generate three times as much power as the Three Gorges Dam.

China has approved the construction of the world's largest dam, stated to be the planet’s biggest infra project costing $137 billion, on the Brahmaputra River in Tibet close to the Indian border, raising concerns in riparian states — India and Bangladesh.

China will be constructing the world's largest hydropower dam on the eastern rim of the Tibetan plateau that could impact India. The dam will be located in the lower reaches of Yarlung Zangbo, producing 300 billion kwh of electricity annually.

The Chinese government has approved the construction of a hydropower project in the lower reaches of the Yarlung Zangbo River, the Tibetan name for the Brahmaputra, according to an official statement quoted by state-run Xinhua news agency on Wednesday.