India eases restrictions on China-linked power equipment companies
New Delhi, July 3: Four China-linked power equipment manufacturers with production facilities in India have been allowed to participate in government tenders for critical power transmission projects, indicating relaxing of restrictions imposed in 2020 after Chinese aggression on the border.
The Ministry of Finance has granted a two-year exemption to TBEA Energy, Nanjing Electric India, New Northeast Electric India and Taikai Electric (India), enabling them to bid for select government contracts.
The approval follows a recommendation from the Ministry of Power and is applicable only to these companies.
The government has clarified that the decision should not be treated as a precedent for other firms.
The move comes as India steps up investments in its electricity transmission network to support rapid growth in power demand and integrate a rising share of renewable energy into the grid.
In 2020, following Chinese aggression on the border and particularly the Galwan Valley clash, the government had tightened procurement norms for companies from countries sharing a land border with India, which included China.
Chinese firms seeking government contracts were required to obtain registration and political and security clearances before participating in public tenders.
The latest exemption indicates a sector-specific policy adjustment rather than a broad rollback of restrictions.
The government continues to retain oversight over participation by foreign-linked companies in strategic infrastructure projects, while allowing limited access where supply constraints could delay execution of critical projects. (BVI)
