China to Bid for Critical Indian Power Projects Again

India has narrowed down the path for four Chinese power equipment manufacturers to re-enter in the market for the Indian government’s critical power tenders.

TBEA Energy, Nanjing Electric India, New Northeast Electric India and Taikai Electric (India) will now participate in tenders for critical power projects for a period of two years, according to the finance ministry order, quoted by Reuters.

It will allow them to bid for government contracts in critical power projects after a gap of six years.

The country's power ministry had sought the exemption in January for entities with manufacturing units in India for critical power projects. India has been examining broader relaxations for Chinese bidders for government tenders as the border tensions ease, the report said.

The move comes as India marches toward its transmission network expansion and support rising electricity demand, Increase its renewable energy capacity for timely deliveries of high voltage equipment and specialised components.

The report stated that it states the exemption will be valid for two years from the date of issuance and “should not be treated as a precedent” for other companies.

The language underlines India’s intent to secure the broader safeguard measures after the border clash in 2020.

Since the clash on the border, it was required for Chinese bidders to get registered with government panel and secure a political and security clearance before competing for a sate contract.

The exemption now paves path to high value tenders in a market they once supplied more freely, but under strict conditions, with no guarantee of accessing beyond the current scope but their factories in India will give them an immediate edge in meeting localisation and delivery expectations.

Above all, the order has come out at a time when India is looking forward to expand its transmission networks and shift more focus on renewable energy additions as the electricity demands are on a rise.