Power equipment makers slide after Centre permits Chinese-linked firms to bid for government projects

As per reports, TBEA Energy, Nanjing Electric India, New Northeast Electric India and Taikai Electric (India) will be allowed to participate in the tenders.

Consequent to this development, shares of GE Vernova T&D (down 8.95%), Hitachi Energy (down 7.89%), CG Power (down 7.12%), TD Power System (down 6%), Thermax (down 5.65%), Transformers and Rectifiers (India) (down 5.31%), GE Power India (down 5%) and BHEL (down 4%) declined.

According to a domestic research firm, the participation of these Chinese companies increases competition for Indian grid equipment makers.

TBEA Energy reportedly has a unit for extra high-voltage transformers and Nanjing Electric is reportedly involved in making smaller geographic information systems and insulators for high-voltage direct current projects. Taikai Electric has a shell factory for 400/765-kilowatt geographic information systems, the report said.

Since a 2020 border clash, New Delhi has required Chinese bidders to register with a government panel and secure political and security clearances before competing for any state contract.

The Power ministry had sought the exemption in January for entities with manufacturing units in India involved in critical power projects, the media reports stated. Amid easing border tensions, the media had reported in January that Union Government was examining broader relaxations on Chinese bidders for government contracts.

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