India-China troops face off in Ladakh over a canal: All you need to know

Officials have said that the canal is being built in the Indian area. However, the Chinese troops have objected to this

Indian and Chinese troops have been engaged in a stand-off in Ladakh's Demchok area — a region that lies along the Sino-India border and site of previous Chinese incursions — over the construction of an irrigation canal. Armed Chinese troops allegedly marched into the Indian territory in Ladakh and stopped the construction of a canal over the last two days but the Indian army has denied incursion reports.

What is the issue?

Local administration is constructing an irrigation canal under the MNREGA scheme to link a village with the 'Hot Spring' in Demchok, 250 kms east of Leh. And the Chinese People’s Liberation Army (PLA) troops reportedly stopped the construction of the canal after entering the Indian territory by crossing over the Line of Actual Control (LAC). According to reports, over 50 PLA soldiers halted the construction of an irrigation canal claiming that permission had to be obtained for such an endeavour.
India and China do not have a properly demarcated border in Ladakh and there is difference of perception of the boundary, which is known as the Line of Actual Control.

While China insists it needs to informed about the construction work in the area, India argues the pact says only sharing of information is required if it's a defence-related construction.

Demchok has been an issue between the two sides as both sides claim ownership over the territory. The area is very close to LAC, making it strategically important to have control over.

Past Incidents

This is not the first time such an event has taken place. In 2014, in Demchok, Chinese villagers had set up some tents to protest the 100-feet long water canal being constructed, connecting Charding Nilong Nallah. Interestingly the LAC passes through the Charding Nilong Nallah. 

Back then, officials said the Indian villagers in Demchok wanted a water source for irrigation and other purposes. "They requested the local authorities for the water source. They started constructing a water channel (under MNREGA) from the Charding Nilong Nallah towards Demchok. The Chinese objected to it, as they said that the LAC passes along the CNN and the water channel cannot be constructed.

A report in Times of India says there was a prolonged incursion by a Chinese platoon in April, 2013 as well that led to India and China agreeing on a protocol to improve communications between border troops.