Amid land grab row in Arunachal Pradesh, India allows Chinese power firms to bid for projects

India has permitted four Chinese power equipment manufacturers with production facilities in the country to participate in government tenders for key power infrastructure projects under a limited exemption issued by the Finance Ministry.

The relaxation, granted through an order dated June 24, applies only to New Northeast Electric India, Nanjing Electric India, TBEA Energy, and Taikai Electric (India). It will remain in force for two years and will not automatically extend to other Chinese companies.

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Power sector gets limited exemption

The move follows a proposal sent by the Power Ministry in January seeking special approval for Chinese companies manufacturing equipment in India and supplying critical power projects, reported Reuters.

The exemption comes as the government pushes to strengthen the country’s electricity transmission network to meet rising power consumption and support the rapid expansion of renewable energy capacity.

Security restrictions remain unchanged

New Delhi had tightened rules governing Chinese participation in government procurement after the 2020 border clash. Since then, Chinese companies seeking public contracts have been required to register with a government committee and obtain political as well as security clearances before bidding.

The latest order carves out a limited exception for the four companies but makes it clear that the decision should not be treated as a precedent for similar requests from other firms.

Earlier this year, Reuters reported that the government was evaluating a broader easing of restrictions on Chinese bidders as bilateral border tensions showed signs of easing.