India Grants 2-Year Procurement Relief to Four Chinese Firms

The Government of India has granted a two-year exemption to four Chinese electrical equipment companies from restrictions under the Public Procurement Order. The Office Memorandum was issued by the Ministry of Finance’s Department of Expenditure on June 24, 2026, following a request from the Ministry of Power.

The exemption applies to TBEA Energy India Pvt. Ltd., Nanjing Electric India Pvt. Ltd., New Northeast Electric India Pvt. Ltd., and Taikai Electric (India) Pvt. Ltd. These companies have manufacturing units in India and will now be allowed to participate in procurement for critical power projects.

The approval is valid for two years from the date of the memorandum. The government has also clarified that this is a one-time decision for these companies and should not be treated as a precedent for future cases.

Analysts believe the move is aimed at addressing supply shortages in critical power equipment, particularly high-voltage transformers and gas-insulated switchgear (GIS), until domestic manufacturing capacity improves.

The development has put power equipment stocks in focus, including Power Cap, GE Vernova T&D, Hitachi Energy India, Siemens Energy India, CG Power, and Transformers & Rectifiers (India), as investors assess the potential impact on future orders and competition in PSU projects.

Brokerage ICICI Securities said the government’s decision to allow four Chinese companies with manufacturing facilities in India to bid for transformer-related projects is not expected to have a material impact on domestic power equipment makers. The brokerage noted that the move was largely anticipated and only permits Chinese firms with manufacturing entities in India to participate in bidding.