India Allows Four Chinese-Linked Power Firms To Bid For Key Government Projects

India has allowed four Chinese-linked power equipment manufacturers with factories in the country to participate in government tenders for critical power projects, according to a government order reviewed by Reuters.

The companies allowed to bid are TBEA Energy, Nanjing Electric India, New Northeast Electric India and Taikai Electric (India). The order, issued by the Finance Ministry on June 24, grants these firms an exemption to participate in tenders for critical power infrastructure projects.

A measured policy shift

The move follows a request made by the Power Ministry in January seeking an exemption for companies with manufacturing units in India that are involved in critical power projects. The exemption applies only to these entities and is aimed at supporting work in the country’s power sector.

Reuters had reported in January that the government was examining broader relaxations for Chinese bidders seeking government contracts as tensions along the India-China border have eased. The latest order appears to reflect a limited easing of restrictions while retaining safeguards.

Exemption comes with limits

Following the 2020 border clash, the Government of India made it mandatory for Chinese bidders to register with a government panel and obtain political and security clearances before competing for any state contract.

The latest order states that the exemption will remain valid for two years from the date of its issuance. It also makes it clear that the decision should not be treated as a precedent for other companies, indicating that the relaxation is limited to the four firms named in the order as India continues expanding its transmission network to meet rising electricity demand and growing renewable energy capacity.