India has allowed four Chinese-linked companies with manufacturing units in the country to participate in government tenders for critical power projects, according to a government order issued by the Finance Ministry. The exemption applies to TBEA Energy, Nanjing Electric India, New Northeast Electric India and Taikai Electric (India) and is valid for two years under specific conditions.
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.
