New Delhi grants a two-year exemption to Chinese firms with Indian factories, reigniting debate over China policy amid ongoing border tensions.
TBS Report
04 July, 2026, 06:55 pm
Last modified: 04 July, 2026, 07:20 pm
National flags of China and India fly next to the Meijiang Convention and Exhibition Center, a venue for 2025 Shanghai Cooperation Organisation (SCO) summit in Tianjin, China August 30, 2025. Photo: Reuters
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National flags of China and India fly next to the Meijiang Convention and Exhibition Center, a venue for 2025 Shanghai Cooperation Organisation (SCO) summit in Tianjin, China August 30, 2025. Photo: Reuters
Highlights
Four Chinese manufacturers with plants in India allowed to bid for government power projects
Exemption valid for two years and will not set a precedent for other firms
Move aims to support India’s expanding power transmission and renewable energy plans
Opposition Congress criticises decision, citing unresolved border and security concerns
India has granted a two-year exemption allowing four Chinese power equipment manufacturers with factories in the country to participate in government tenders for power projects, according to an order issued by the Ministry of Finance on 24 June.
The exemption applies to TBEA Energy, Nanjing Electric India, New Northeast Electric India and Taikai Electric (India). The order specifies that the approval is valid for two years from the date of issuance and should not be treated as a precedent for other companies.
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The move comes as India accelerates the expansion of its electricity transmission network to meet rising power demand and support the rapid addition of renewable energy capacity.
Since the deadly border clash between Indian and Chinese troops in eastern Ladakh in 2020, India has required Chinese companies to register with a government panel and obtain political and security clearances before participating in government procurement.
The decision has triggered criticism from the opposition Congress party.
Congress General Secretary Jairam Ramesh accused the government of pursuing what he described as a “calibrated capitulation” to China despite continuing border disputes, a widening trade deficit and persistent security concerns.
In a post on X, Ramesh said China’s stance on Arunachal Pradesh, the Brahmaputra river and eastern Ladakh remained unchanged, and referred to the 2020 Galwan Valley clash while criticising the government’s approach towards Beijing.
The exemption is expected to help ease equipment procurement for India’s expanding power infrastructure while maintaining restrictions on other Chinese firms seeking access to government contracts.