India allows four Chinese firms to bid for critical government power projects

New Delhi: In a limited relaxation of its procurement rules, the government has allowed four Chinese power equipment manufacturers with factories in India to participate in government tenders for critical power projects. The exemption, granted for two years, applies only to the identified companies and does not alter the broader restrictions on firms from countries sharing a land border with India.

The decision was notified through an order issued by the Department of Expenditure under the Ministry of Finance on June 24. The companies covered under the exemption are TBEA Energy, Nanjing Electric India, New Northeast Electric India, and Taikai Electric (India).

The exemption follows a proposal made by the power ministry in January 2026, seeking relaxation for companies manufacturing power equipment in India. Allowing these firms to bid for critical projects will help ensure timely availability of equipment required for the growing power infrastructure in the country, the ministry said.

India introduced stricter public procurement norms in the aftermath of the 2020 India-China border clash, requiring companies from countries sharing a land border with India, including China, to register with the designated Indian authority and obtain political and security clearances before participating in government procurement of goods, services or works.

Under the latest order, the four companies have been exempted from these requirements for government tenders related to critical power projects. However, the finance ministry said the exemption will remain in force for two years from the date of the order and should not be treated as a precedent for any other company seeking similar relief.

The decision comes as India ramps up investment in its power transmission network to meet rising electricity demand and support the addition of renewable energy capacity. Industry officials have highlighted the need for uninterrupted supplies of specialized power equipment to keep major infrastructure projects on schedule.

The exemption also comes amid signs of improving ties between New Delhi and Beijing. Earlier this year, Reuters reported that the government was considering limited relaxations for Chinese companies in select sectors as border tensions eased. Even so, the latest order makes it clear that the relief is restricted to the four specified companies and does not change India’s overall procurement policy for firms from neighbouring countries.