"The Prime Minister said no dam is being constructed and only run-off-the-river construction has been made," Khandu told reporters while citing a letter from Chinese government.
Khandu said the Prime Minister had also asked them that India would tackle diplomatically the boundary issue with China.
Last week, a media report claimed that China was building a big dam on Brahmaputra river, prompting India to express concern over the development.
The report also said that it would change the course of the river and could result in submergence of low-lying areas downstream.
India has no problem with run-off-the-river constructions but building of a dam as it involves storage of water.