NEW DELHI: The Centre has granted a two-year exemption to four China-linked electrical equipment makers with manufacturing facilities in India, allowing them to participate in government tenders for critical power infrastructure projects.
The four companies are TBEA Energy India, a wholly owned subsidiary of the Chinese company TBEA Group; Nanjing Electric India, a wholly owned subsidiary of the Chinese power equipment manufacturer Nanjing Electric; New Northeast Electric India, which has technology transfer ties with Chinese power sector companies; and Taikai Electric (India), a subsidiary of China-headquartered Taikai Group.
The exemption has been granted by the finance ministry under the Public Procurement Order (Rule 144(xi) of the General Financial Rules, 2017), which restricts companies from countries sharing a land border with India, including China, from participating in government procurement without prior approval.
TNIE has reviewed the copy of the order.
Following the 2020 border clashes, Chinese bidders were required to obtain political and security clearances before bidding for public contracts.
In May 2026, the finance ministry notified new rules allowing overseas companies with Chinese shareholding of up to 10% to invest in India under the automatic route.
With the exemption, these companies will be eligible to bid for public sector contracts involving critical power equipment, particularly high-voltage transformers and gas-insulated switchgear (GIS), where domestic manufacturing capacity remains limited.