India has granted a two-year exemption to four Chinese-linked power equipment manufacturers with manufacturing facilities in the country, allowing them to participate in government tenders for critical power infrastructure projects. The approved companies include TBEA Energy, Nanjing Electric India, New Northeast Electric India and Taikai Electric (India). The exemption was issued by the Ministry of Finance following a recommendation from the Ministry of Power.
The decision comes as India accelerates the expansion of its transmission network to meet rising electricity demand and support its renewable energy targets. Industry experts have highlighted shortages of key equipment such as transformers and gas-insulated switchgear, making additional manufacturing capacity essential for timely project execution.
Following the 2020 India-China border tensions, Chinese companies faced strict procurement restrictions and were required to undergo political and security clearances before participating in government contracts. This latest exemption applies only to the four specified firms with local manufacturing operations and is valid for two years. The government has clarified that the move should not be treated as a precedent for other companies.
The policy reflects a pragmatic approach to strengthening India’s power infrastructure while maintaining safeguards for national security. As the country invests heavily in grid modernization and renewable integration, ensuring the availability of critical equipment remains a key priority.
