The presence of Chinese People’s Liberation Army (PLA) troops in Pakistan occupied Kashmir (PoK) after frequent incursions in Ladakh area is alarming. The PLA troops were first spotted in the later part of the last year and ever since their presence was witnessed opposite Tangdhar sector as well. In this area, Chinese Government-owned China Gezhouba Group Company Limited has been building a Jhelum-Neelum 970 MW Hydel Power Project. The hydel project is being built in response to India’s Kishanganga Power Project in Bandipore of north Kashmir. The Indian project is designed to divert water from the Kishanganga River to a power plant in the Jhelum River basin and will have an installed capacity of 330 MW. The sighting comes at a time when the Indian Air Force is sounding an alarm over the eroding “combative edge” to tackle a simultaneous two-front war with Pakistan and China. The IAF is now at its lowest combat strength in more than a decade. Reports suggest that PLA under a local name will establish a security wing in the PoK so that India does not protest. The new three divisions, around 30,000 men, will be deployed in and around the installations built by the Chinese firms so that Beijing can justify its presence along the LoC in northern part of Kashmir. Managing defences is going to be a complex issue and the Union Government has to take up the issue on priority especially when the modernisation of armed forces have missed many datelines. The latest example is the delay in induction of much projected Light Combat Aircraft (LCA) which is now projected somewhere in 2020 . The cost of the project was initially slated to be Rs 575 crore but has since escalated to Rs 10,397 crore. In 2001, first flight of the first aircraft was conducted in January as it had missed the deadline of December 1996 by a long way. Such lackadaisical approach with political aims has to cut short to counter the growing external threats. The changing geo-political scenario needs that we remain on our vigil from the neighbours designs.