India lets four Chinese power firms bid on critical projects

New Delhi has let four Chinese power equipment makers with factories in India compete for government tenders on critical power projects, granting a two-year exemption that stops short of a broad reopening. The finance ministry order, dated June 24, 2026, says the move will not set a precedent.

The order names TBEA Energy, Nanjing Electric India, New Northeast Electric India and Taikai Electric (India). The power ministry asked for the exemption in January 2026 to let companies with manufacturing units in India into tenders tied to critical power infrastructure. The carve-out applies only to these firms and only for two years.

India has spent years keeping Chinese bidders at arm’s length after the 2020 border clash between Indian and Chinese troops. Since then, Chinese companies seeking state contracts have had to register with a government panel and win political and security clearances before competing. The restrictions shut Chinese firms out of a public-procurement market valued at roughly $700 billion to $750 billion.

In February 2026, India began loosening curbs on Chinese equipment imports for state-run power and coal companies as shortages and project delays mounted. India's electricity use is rising, renewable capacity is expanding, and transmission networks need constant upgrades to move power from new generating sites to industrial centers and cities.

India lost 300 GWh of renewable power in the first quarter of 2026 because transmission delays and bottlenecks prevented clean electricity from reaching the grid. That came as the country pushed toward its 2030 goal of 500 GW of non-fossil capacity.

Shares of CG Power and Hitachi Energy fell sharply on July 3 after the exemption became public.