India has granted a limited exemption allowing four Chinese power equipment manufacturers with factories in the country to participate in government tenders for critical power projects, according to an official order issued by the Ministry of Finance.
The move marks a partial easing of restrictions imposed on Chinese companies following the 2020 India-China border clash.
Four Chinese Companies Get Approval
According to the government order dated 24 June, the following companies have been allowed to participate in government tenders:
- TBEA Energy
- Nanjing Electric India
- New Northeast Electric India
- Taikai Electric (India)
The exemption applies only to these companies and is valid for two years from the date of issuance.
Power Ministry Requested the Exemption
The order states that the Ministry of Power sought the relaxation in January for companies with manufacturing facilities in India that are involved in critical power infrastructure projects.
It also makes clear that the exemption should not be treated as a precedent for other companies seeking similar approvals.
Restrictions Introduced After Border Clash
Following the deadly India-China border clashes in 2020, New Delhi tightened rules governing Chinese participation in government procurement.
Under the policy, Chinese bidders must register with a government committee and obtain both political and security clearances before being allowed to compete for public contracts.
Earlier this year, Reuters reported that India was considering broader relaxations for Chinese companies as bilateral tensions along the border showed signs of easing.
Power Expansion Driving Decision
The exemption comes as India rapidly expands its electricity transmission network to meet growing power demand and support the country’s renewable energy ambitions.
With large investments planned in transmission infrastructure, the government is seeking to ensure sufficient participation from manufacturers capable of supplying specialised power equipment.
While the latest order provides limited access to four Chinese manufacturers operating in India, it maintains that the decision is specific to these firms and does not signal a broader policy change towards Chinese companies.
(with inputs from Reuters)
