India Allows Four Chinese-Linked Power Equipment Firms to Participate in Government Tenders
Claire Weston
India's finance ministry on June 24 exempted four Chinese-linked power equipment makers with local factories from post-2020 procurement curbs, marking the first targeted relaxation since the border clash — but the waiver is capped at two years and cannot be cited as precedent.
Which four companies got the green light?
The exemption covers TBEA Energy, Nanjing Electric India, New Northeast Electric India, and Tikai Electric (India) — all operate manufacturing plants on Indian soil.
This means → they can bypass the security-review registration imposed after 2020 and bid directly on critical power-grid contracts.
In plain terms = these four firms received a time-limited fast pass — no more queuing for political clearance.
Why is India opening the door now?
India is racing to expand its transmission grid to keep pace with rising electricity demand and to connect wind and solar capacity.
The power ministry filed for the exemption back in January, signalling that the supply gap is not sudden but has been building pressure for months.
This reflects a hard reality: in power-grid buildout, India's domestic capacity falls short, and Chinese-linked equipment remains difficult to replace.
What were the 2020 restrictions?
After the 2020 border clash, India required Chinese bidders to register with a government committee and obtain political and security clearance before competing for any government contract.
In plain terms = every Chinese firm faced an extra gatekeeping step — not an outright ban, but a long and uncertain approval process.
The exemption comes as border tensions ease. Reuters reported in January that India was studying broader relaxations of curbs on Chinese bidders.
How wide is this opening?
The waiver runs for two years only, starting from the date of the order.
The order explicitly states the exemption may not be cited as precedent by other companies.
This means → the relaxation is targeted and bounded, not a systemic reopening. New Delhi has kept itself room to tighten again at any time.
Content is for reference only, not financial advice.