The Ministry of Environmental Protection said that the proposed construction work for Xiaonanhai Dam should be banned on the Jinsha River, which the upstream section of the Yangtze.

Environmentalists had concerns about the endangered river fish due to the planned dam project. They asserted that the dam would have flooded a free-flowing section of the Yangtze river’s lower reaches, ruining a major spawning ground for many fishes.

In a document, the ministry stated "In the last 10 years, two investigations have been carried out into construction in precious and unique national protection zones for fish in the lower reaches of the Jinsha River, and the structure and function of the zones have already been heavily impacted.

"Your company as well as other units cannot plan or build the Xiaonanhai hydropower plant".

Six dams have already been constructed on Yangtze, including the world’s biggest Three Gorges dam.

According to the local media reports, the proposed Xiaonanhai hydropelectric plant would have generated 1,680 megawatts of electricity.