India’s government allows four Chinese-linked power equipment manufacturers with manufacturing units in India to bid for critical power infrastructure projects. Multiple reports cite a government order that grants an exemption from existing restrictions, effective for two years from the date the order is issued. The exemption applies specifically to the four named firms and is not presented as a precedent for other companies.
The move follows a request by India’s Ministry of Power made in January. That request sought an exemption for entities that have local manufacturing involvement in critical power projects. The government states the intent is to support work in India’s power sector, including efforts to expand the transmission network and accommodate rising electricity demand and growing renewable energy capacity.
After the 2020 India-China border clash, India required Chinese bidders to register with a government panel and obtain political and security clearances before participating in state contracts. The latest action is described as a limited relaxation that maintains safeguards while easing participation for the four specific firms.
Some political opposition is reported, including criticism from Congress, citing concerns related to border disputes and trade imbalances.
