“Our position is consistent and clear that the entire territory of the union territories of Jammu and Kashmir and Ladakh have been, are, and will continue to be an integral and inalienable part of India," India's Foreign Ministry spokesman Anurag Srivastava was quoted as saying by Hindustan Times.

“We have consistently conveyed our protest and shared concerns with both China and Pakistan on all such projects in the Indian territories under Pakistan’s illegal occupation,” he said.

The Pakistani government on Wednesday signed a Rs 442 billion contract with a joint venture of China Power and Frontier Works Organisation (FWO) for the construction of the Diamer-Bhasha dam.

The Chinese state-run firm holds 70 per cent and the FWO, a commercial arm of the Armed Forces of Pakistan, 30pc share in the consortium, reports Dawn News.

The project will include construction of a diversion system, main dam, access bridge and the 21MW Tangir hydropower project.

The eight million acre feet (MAF) reservoir with 272-metre height will be the tallest roller compact concrete (RCC) dam in the world, reported Dawn News.

Diamer-Bhasha dam project chief executive officer Amir Bashir Chaudhry and authorised representative of China Power Yang Jiandu signed the agreement on behalf of the Water and Power Development Authority (Wapda) and the joint venture, respectively.

Water Resources Minister Faisal Vawda, Chinese Ambassador Yao Jing, Water Resources Secretary Mohammad Ashraf, Wapda chairman retired Lt Gen Muzammil Hussain, Pakistan Army engineer-in-chief Lt Gen Moazzam Ejaz and FWO director general Maj Gen Kamal Azfar attended the signing ceremony, reported the newspaper.

According to an Economic Times report, India had objected to the construction of the dam repeatedly as it falls into the Indian territory. "And if constructed the Dam can cause water shortage in Ladakh. The 200-sq km reservoir of the dam could flood 100 kms of the Karakoram highway, and the villages and farms of over 35,000 people could disappear," the report said.